Craig Wear, CFP®Craig Wear, CFP® | Expert in Roth Conversions & Tax-Efficient Retirement Strategies for IRA Millionaires

Year-end Roth Conversion Tip 3

20 Nov 2024 · 1 min

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Craig Wear, CFP, explains how to use qualified charitable donations (QCDs) if you're at RMD age. You can transfer money directly from your IRA to a 501(c)(3) organization, and the distribution won't be taxable if done correctly.

Questions this video answers

A direct transfer from an IRA to a 501(c)(3) organization that is not taxable when executed correctly.

No — the transfer must go directly from the IRA to the 501(c)(3), not through the taxpayer.

Chapters

Number three is get a charitable giving plan. Consider what do we normally do? So if you're already of RMD age required, minimum distribution age, then you are aware that you can do what are called qualified charitable donations, QCDs out of your IRA directly to a 501 organization. And it has to go from the IRA to the 501C3 not through your pocket first. But if you do that, then you don't have to pay tax on that distribution. It goes straight to them and it makes it work.