How to Use a QCD This Summer to Reduce Your Taxable Income in 2026
Why pass up an opportunity to save yourself some money and do good for others at the same time?
Overview
You know in the back of your mind that you'll have to pay taxes on at least some of your retirement income, but it's one thing to know this and another to actually watch Uncle Sam take thousands of dollars of your hard-earned savings. Once you turn 73, it gets even more complicated because you're no longer wholly in control of your retirement withdrawals.
You have to take required minimum distributions (RMDs) from all tax-deferred 401(k)s and IRAs and pay taxes on that money. That could push you into a higher tax bracket than you'd bargained for. However, a qualified charitable distribution (QCD) can help you avoid the bloated tax bill while doing some good for others in the process. Here's exactly how to do it.
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Originally published at www.fool.com.