Thoughtful Tax Strategies for
High-Net-Worth Clients: QCDs Explained
Help your clients help others AND save on taxes long-term
Your clients know they can trust you and your expertise, and they look to you for sound advice that can help them keep more of their wealth in their own pockets. As a CPA, you can add even more meaningful value to your clients by learning more about various financial and estate planning strategies, including Qualified Charitable Distributions (QCDs).
QCDs allow individuals age 70½ and older to make direct charitable gifts from their IRAs — without increasing taxable income. Used correctly, they can reduce Adjusted Gross Income (AGI), minimize Social Security taxation, and even help lower Medicare premiums. What do you need to know to best serve clients who might benefit from a QCD strategy?
- How QCDs interact with RMDs and AGI
- IRS rules, eligibility, and annual limits (including the 2025 inflation adjustment)
- New provisions for legacy QCDs and their potential to generate lifetime income
- Common pitfalls involving 401(k) rollovers and after-tax contributions
As a wealth management firm founded at the intersection of tax and wealth, Choreo has a long history of partnering with tax professionals like you to serve clients with advanced wealth and tax management needs. A key component of our mission at Choreo is to help educate our CPA partners about wealth, financial and estate planning, helping them add even greater value to the client experience – whether those clients are business owners, highly-compensated professionals, high-net-worth individuals, or families with generational wealth needs.
If you’d like more information about Choreo’s approach to QCD strategy, or how Choreo advisors partner with and support tax professionals, please complete the form below or email us directly at yourfuture@choreoadvisors.com.