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March 9, 2021 9:12 AM newsfeedback@fool.com (Adam Levy)
Posted:
Updated:
March 11, 2021 7:41 AM
If charitable giving is a significant part of your retirement plans, you have a lot of options for making your contributions. You can donate cash directly, send appreciated stock to your charities of choice, or use a donor-advised fund to manage your contributions and distributions each year. While each has its pluses and minuses, the best option for many older retirees is a qualified charitable distribution from a traditional IRA.
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What’s a qualified charitable distribution?
A qualified charitable distribution, or QCD, is a withdrawal from an IRA that’s paid directly to a qualified charity. The account owner must be at least 70½ years old at the time the distribution is made (not merely turning 70½ that year).