If you are over 70½ years of age and have an IRA, you may be considering the required minimum distribution (RMD) you must take every year.

These withdrawals are normally fully taxable, but by using a special IRA distribution method called a Qualified Charitable Distribution (QCD), you can make a charitable gift to the Church and have a sizable tax advantage.

With the 2022 IRS standard deduction of $25,900 for couples ($12,950 for singles), those who used to get a tax deduction for their tithes and offerings may no longer reach this threshold. Therefore, if you make a donation to the Church (whether tithes or offerings), from taxable income, unless your total itemized deductions are over $25,900, you will have no tax advantage.

But, with the advantage of the special QCD provision you could donate directly to the Church from your IRA and the amount you contribute would not be included in your taxable income for this year.

For a QCD to count toward your current year’s RMD, it must be made before the end of the calendar year. The funds must be distributed directly from the IRA account, being made payable to United Church of God, an International Association.

Using a QCD may also help lower or eliminate your Social Security benefit taxation, the alternative minimum tax or the 3.5% investment surtax, and it may keep you from being bumped into a higher marginal tax bracket.

Some may also have 401(k) or 403(b) tax deferred annuities (TDAs). These are not eligible for a QCD. However, you are allowed to move or “rollover” a 401(k) or 403(b) tax free into an IRA. Then you will be qualified to use the QCD from that IRA.

Consult with your IRA representative or tax preparer for more information.