The April 15 tax deadline has passed. Some of us who
usually itemize deductions were surprised by the new standard deduction
being the choice to lessen our tax liability. Be not dismayed - you
have an opportunity to make qualified charitable contributions to your
church for 2019 and beyond without having to itemize deductions. You can
manage your retirement assets to benefit you and your family, reduce
your tax burden, all while supporting the ministries of the church. When
you reach the age of 70 1/2 you must begin making required minimum
distributions (RMDs). A portion of your RMD may be sent as a tax-free gift from your IRA custodian (financial institution) directly to the Church by means of a QCD (qualified charitable distribution).
For a QCD to count toward your current year's required
minimum distribution, the funds must come from your IRA after the date
that you turn 70 1/2 and by your RMD deadline, which is generally
December 31 each year. To report a QCD,follow the 1040 instructions
for lines 4a and 4b. These gifts are easy to make; ask your
tax adviser and your financial institution how you can take advantage of
this tax break.
