Senior Connections

Farmingdale Public Library

Newsletter Topic of the Month

July/August 2017

Reducing Income Tax Liability from IRA Distributions by Charitable Donations

With IRS Publication 590 (Individual Retirement Arrangements) as its source, American Institute of CPAs has illuminated the Qualified Charitable Distributions (QCD) provision enacted in 2006.

If you are an IRA owner and must take a required minimum distribution (RMD), you can reduce income tax liability by donating a portion of it to a qualified charity. A QCD can not only save you income taxes, it can also help minimize your taxable estate and fulfill your philanthropic desires.

For details about QCD, visit us at the library during our normal hours and obtain information covering:

*Background 

*Who might consider this strategy

*Certain limitations and requirements that apply

*Income tax implications