Saving on Taxes and Give to Charity
Here is a tip from my favorite CPA, Brent, on a way to save taxes and still donate to your charity.
If you are 70 1/2 and have to take a Required Minimum Distribution, RMD, one way to give to your favorite church/charity is via this RMD.
Have the firm/trustee liquidate a specified dollar amount from your IRA and have them mail/wire the amount directly to the charity.
You will pay no taxes on those withdrawals and still benefit from your standard deduction.
Any amount processed as a QCD, Qualified Charitable Deduction, counts toward your RMD and reduces the amount of your IRA distribution.
You can only make the tax free transfer from an IRA, not a 401(k) or a 403 (b).