By Diana Batchelor
Your first question may be: What is a QCD? A Qualified Charitable Donation allows one to donate a part of his or her required minimum distribution (RMD) from their IRA directly to a qualified charity. Remember, the RMD is the amount you must distribute from your IRA at age 70½. The maximum allowable amount of a QCD is the total of your RMD or $100,000, whichever is less. If you are not required to take an RMD, then you cannot take advantage of a QCD. The QCD option is great for clients who are charitably inclined, as the QCD portion of their RMD will not be considered a taxable distribution. Previously, the QCD provision was approved by Congress annually. This past summer, the House Ways and Means Committee has passed a proposal (H.R. 416) to amend the tax code to make charitable contributions from IRAs tax-deductible, not subject to annual approval. The Permanent IRA Charitable Contribution Act of 2014 is currently on the calendar to be considered by the House for approval.