IRS Alphabet Soup

Peggy McGee

Now that tax season is over, you may be looking for some ways to reduce your taxable income for Tax Year 2024. Did you know that you can make a qualified charitable distribution (QCD) to TWOQC (The Women of Quail Creek) for the Scholarship Program or other charity of your choice. A QCD is a distribution from one’s Individual Retirement Account (IRA) to a qualified charity. One must be age 70-1/2 or older to make a qualified charitable distribution. A qualified charitable distribution is not taxed, nor is it included in taxable income as long as one follows the IRS rules.

The Women of Quail Creek’s Scholarship Program awards scholarships to high school students from Sahuarita, Walden Grove, and Rio Rico High Schools, as well as to women over 21 who are returning to school to complete post-secondary education or enter a new career field. All scholarships are needs based.

A QCD is a direct transfer of funds from an IRA custodian, payable to a qualified charity. Funds distributed directly to you, the IRA owner, and which you then give to charity do not qualify as a QCD. A QCD can be counted towards satisfying the Required Minimum Distribution (RMD) for the year. The QCD option is available for both those who take the standard deduction and those who itemize deductions.

To make a contribution to TWOQC’s Scholarship Fund, please have the trustee make the check payable to TWOQC (Scholarship Program). QCDs can be made anytime between now and Dec. 31, 2024, to count for Tax Year 2024.

Please contact your financial advisor or IRA Trustee should you have questions about or to sign up to make a qualified charitable distribution.