Let’s talk money!!  Today’s topic:  Qualified Charitable Distribution (QCD)

“What is that?” you ask.  For many people reading this, it’s something for the future.  However, if you are, or are connected with someone over 70 and one half years, this is something you should know about or communicate to your older friends and relatives.

This part is for the young’uns:  When you have a retirement account and reach the age of 70 years and 6 months, you need to withdraw an RMD.  RMD stands for Required Minimum Distribution and is the amount of money that that the government requires you to withdraw each year, and then . . . pay the taxes that you owe on this amount. 

So, I was pleasantly surprised to learn of QCDs, as it allows me to designate whatever portion of my RMD I choose to 501.c3 non-profits.  That means that the income goes straight to the non-profit and there are no taxes required and paid on this amount.  With the new income tax laws, there is an automatic deduction and no longer do you get “credit” for donations to non-profits. 

So, a QCD is the perfect way to support the good work being done by all non-profits, with special mention of WaWa, of course.  Spread the word!