Are QCDs Back?

The passage of the American Taxpayer Relief Act of 2012 extended Qualified Charitable Distributions (QCDs) for eligible IRA owners through the end of 2013.

Under the QCD provision, the IRS allowed individual IRA owners over the age of 70½ to exclude from gross income up to $100,000 that is paid directly from their individual retirement accounts (excluding SEP or SIMPLE IRAs) to a qualified charity.

When the QCD provision was about to expire, a bill was submitted at the end of 2013 that would make QCD permanent.

Just a few days ago, on May 29th, the House Ways and Means Committee approved the bill. This is great news for many IRA owners but it is only the first step in a long process – there are about 6 more steps to go.

Look for updates from us on the possible permanent return of QCDs.

 

Source: www.waysandmeans.house.gov, H.R. 4619, Permanent IRA Charitable Contribution Act of 2014

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