QCD….quintessential cute dog? Quiet cats and dogs? Not quite, but a QCD still has something to do with pets.

It stands for Qualified Charitable Distributions from retirement accounts, and you can donate your distribution to Connecticut Humane Society pets and receive a tax break at the same time!

Who can give a QCD?

Anyone age 70½ or older who has a traditional IRA is eligible to make a Qualified Charitable Distribution directly to a qualified nonprofit like CHS. You can give any amount up to $108,000 per year and enjoy the tax advantages. Even if you don’t yet have to take Required Minimum Distributions (RMDs), you can still make a QCD and enjoy the tax advantages.

And for those age 73 and older, there’s an extra benefit: QCDs can count toward all or part of your annual RMD. Federal law requires people 73 and up to take a minimum distribution each year from their 401(k) and/or IRA accounts—even if they don’t need the funds at that time.

If you keep the cash after withdrawing it from your retirement accounts, you must pay taxes on the amount. But when you transfer it directly to CHS pets? You’re exempt from paying income tax on it. Win-win!

The bank or financial advisor holding the account makes the distribution, and they must be done by December 31.

CHS volunteer Valerie Juengst sees firsthand how much the pets need, especially when she fosters pets and brings them back to CHS for medical care. That’s why she donates her retirement account distributions to CHS pets.

“It’s a wonderful way of giving. It’s a super tax benefit. And it can be any portion of the required minimum distribution,” Valerie added.

“I’ve always been drawn to creatures who don’t have their own voice,” said Valerie, who shares her life with several CHS canine and rabbit alumni. “Since I retired, I’ve been volunteering at CHS. I’m so devoted to it because it’s a wonderful organization.”

To inquire about donating your Qualified Charitable Distribution to CHS pets and how to reap the tax benefits, contact Kayleigh Shettleworth at 860-594-4502, ext. 6307. Read more about IRA charitable contributions here.