Craig Wear shows how to use qualified charitable distributions (QCDs) with Roth conversions to cut taxes on retirement withdrawals. You can donate up to $100,000 yearly from an IRA to charity and count it toward required minimum distributions without paying tax on it. Convert now to align future withdrawals with your charitable giving plans.
Tip number five, and only one more after this. If you're charitably inclined, you can combine qualified charitable distributions with Roth conversions to manage your RMDs. These QCDs is what the acronym is allow you to donate up to $100,000 a year directly from your IRA to a charity which counts toward your RMD without being included in your taxable income. The strategy here is is use those QCDs to satisfy part or all of your RMD later in life. Convert now down to that calculated amount that's going to spit out the QCD amount in a range that is what you want to give. And of course you want to bring the QCD down for contribution, but you also want to bring it down below any standard deductions that may exist in the tax law at the time.
