IRA Charitable Giving
A Qualified Charitable Distribution (QCD) is a distribution from an IRA directly to an eligible charity, Regina Dominican. The key benefit of a QCD is that the distribution amount is not included on the Form 1040 as income. On the flip side, the QCD amount is not included as part of the person’s itemized deduction for charity.
How to make it happen:
Contact your advisor, retirement plan administrator, or plan fiduciary company to initiate a transfer. You may also complete this form (RMD Letter 3), which is accepted by most IRA custodians.
How it works:
- · The donor must be age 70 ½ or older when the gift is made.
- · The gift must come from an IRA account. (401(k), 403(b), SEP IRA accounts, and other retirement accounts do not qualify.)
- · The gift must come directly from your IRA administrator to Regina Dominican.
- · Total QCD gifts in any one year cannot exceed $100,000.
- · The QCD can count toward your Required Minimum Distribution (RMD) if you have not already taken your RMD for the year you make your gift.
- · The gift from your IRA will not be available as an income tax charitable deduction.
- · The gift from your IRA will be excluded from income.
- · Please note that gifts given directly from your IRA cannot be used to establish life income gifts such as charitable gift annuities and charitable trusts.