IRA--Qualified Charitable Distribution (QCD)

IRA--Qualified Charitable Distribution (QCD)


You may be looking for a way to make a big difference to help further our mission. If you are 70 ½ or older you may also be interested in a way to lower the income tax cost from your IRA withdrawals. An IRA Qualified Charitable Distribution (QCD) is a way you can help continue

our work and benefit this year.

 

As a result of the new tax law, more taxpayers will be taking a standard deduction and their charitable gifts will no longer be deductible. But the QCD gives a taxpayer a double advantage. You can take the higher standard deduction and then effectively add a charitable deduction on top of that, by taking your IRA distribution as a QCD, which is excluded from income.       

 

IRA   

Benefits of a Qualified Charitable Distribution


- Satisfies your required minimum distribution (RMD) for the year.

- Reduce your taxable income, even if you do not itemize deductions.

- Effectively turn your RMD into a charitable deduction.

 - Help further the work and mission of our foundation.

- Avoid taxes by transferring up to $100,000 directly from your IRA to our Foundation.

     

 

   

How a Qualified Charitable Distribution Gift Works


1. Contact your IRA plan administrator to discuss and request a QCD.

2. Your IRA funds will be directly transferred to our foundation to help continue our important work.

3. QCD does not increase adjusted gross income as a taxable IRA distribution does.

4. Please contact us if you wish for your gift to be used for a specific purpose. 

 

   

Example


 Tax savings can be significant. Take a taxpayer in the new 24% tax bracket in 2018 and makes a $10,000 gift using a QCD. If the RMD happens also to be $10,000, then none of that RMD is included in income. If the taxpayer is taking the standard deduction ($24,000 for married filing jointly) where no charitable contributions are deductible, this $10,000 QCD provides an effective tax deduction and will reduce the 2018 tax bill by $2,400