{"id":2024,"date":"2024-12-03T10:41:20","date_gmt":"2024-12-03T15:41:20","guid":{"rendered":"https:\/\/www.bowditch.com\/estateandtaxplanningblog\/?p=2024"},"modified":"2024-12-03T10:41:21","modified_gmt":"2024-12-03T15:41:21","slug":"2024-year-end-charitable-giving-and-ira-qualified-charitable-distributions","status":"publish","type":"post","link":"https:\/\/www.bowditch.com\/estateandtaxplanningblog\/2024\/12\/03\/2024-year-end-charitable-giving-and-ira-qualified-charitable-distributions\/","title":{"rendered":"2024 Year-End Charitable Giving and IRA Qualified Charitable Distributions"},"content":{"rendered":"

As the 2024 tax year comes to a close, owners of individual retirement accounts (IRAs) might consider combining the tax benefits of charitable giving with a qualified charitable distribution (QCD) from their IRA.<\/p>\n

If a taxpayer is at least 70 \u00bd years of age, they can make an IRA distribution of up to $105,000 to a qualified charitable organization and the distributed amount is excluded from gross income for federal and Massachusetts income tax purposes. In addition, the distribution\u00a0counts towards the required minimum distribution amount for the tax year.<\/p>\n

Each IRA owner age 70 \u00bd or older can exclude from gross income up to $105,000 of a QCD. That\u2019s up from $100,000 in 2023. For a married couple each with an IRA, if both spouses are age 70 \u00bd or over when the distribution is made, each spouse can exclude up to $105,000 for a total of $210,000.<\/p>\n

For the distribution to count as a QCD, the following requirements must be met. First, the taxpayer must receive a written acknowledgement from the charity recipient. Second, the trustee of the IRA must transfer the funds directly to the charitable organization (the distribution cannot be made to the taxpayer first). Third, the charity recipient of the QCD must be a 501(c)(3) organization that is eligible to receive tax-deductible contributions. The following charities do not qualify for QCDs:<\/p>\n