Columbia, South Carolina--(Newsfile Corp. - January 10, 2023) - Dyadic Financial announced that it will be implementing Qualified Charitable Distributions (QCDs) into its retirement plans for clients. QCDs allow individuals to satisfy their Required Minimum Distributions (RMDs) for the year by donating directly to a qualified charity, up to $100,000 and excluding the donation from their gross income.
"QCDs provide a great opportunity for individuals to satisfy their RMDs and give back to their community in a tax-efficient manner," says Brad Blackburn CFP®, ChFC® and Founder of Dyadic Financial. "Many of our clients are charitably minded and want to find ways to make a difference, and QCDs allow them to do so while also taking care of their financial obligations."
Traditional Individual Retirement Accounts (IRAs) allow individuals to contribute money pre-tax and grow it tax-deferred. At retirement, money pulled from the account becomes taxable. The government implemented RMDs to ensure that the money in these accounts would eventually be taxed. However, for some individuals, RMDs can be a burden if they do not actually need the extra income. QCDs provide a solution by allowing individuals to donate directly to a qualified charity and satisfy their RMDs for the year.
It is important to note that many retirees use the standard deduction when filing their taxes rather than itemizing their deductions. If they make contributions to a charity out of pocket, these contributions are typically not deductible. QCDs provide a way for these individuals to donate to their favorite charities without paying taxes on the money first.
There are certain rules and limitations surrounding RMDs and QCDs that may affect individual circumstances differently. With every situation being different it helps to determine if QCDs fit by speaking with a professional. To contact Dyadic Financial, reach out to 803-708-4727 to learn more.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/150870