Charitable IRA rollover eases tax pain of RMDs

Description

Abstract: One downside of a traditional IRA is that, once seniors reach age 70½, they must begin taking required minimum distributions (RMDs) — and pay taxes on them — whether they need the money or not. But a qualified charitable distribution (QCD), also known as a “charitable IRA rollover,” lets people avoid taxes on up to $100,000 in RMDs. This article highlights the advantages of QCDs over ordinary donations and explains their requirements.