Year-End RMDs and the QCD Workaround Strategy

by Prof. Robert Bloink and Prof. William H. Byrnes

Once again, the end of the year is upon us—and many clients may be searching for required minimum distribution (RMD) strategies that can help them avoid a tax hit for 2024. The qualified charitable distribution (QCD) strategy is one that tends to come up each year. It’s also a strategy that seems to generate questions and confusion. Taxpayers who are interested in furthering their charitable goals for the year can kill two birds with one stone by using the tax friendly QCD strategy. The rules are relatively detailed, so taxpayers should ensure they understand the basics to avoid generating a surprise tax hit for the year.

QCD Giving: The Basics