A Qualified Charitable Distribution makes it easy for donors to minimize the tax bite of the required minimum distribution associated with IRAs.
This tax-free IRA-to-charity transfer, often called an IRA charitable rollover, is an important opportunity for donors who:
- Plan to make charitable donations
- Don't need the money they must withdraw as required minimum distributions (RMDs)
- Want to support our mission
Qualified Charitable Distribution Requirements
The tax benefits associated with Qualified Charitable Distributions from IRAs directly to charity are subject to precise and specific requirements:
- a minimum age—the donor must be at least 70½
- a maximum amount—no more than $100,000 per year
- a qualified public charity—no gifts to private foundations, or to set up donor-advised funds or split-interest charitable trusts
- a direct transfer—money must be moved directly from the IRA account to the charity
Satisfy Required Minimum Distributions
Qualified Charitable Distributions can be used to satisfy all or part of a donor’s required minimum distribution (up to $100,000). This makes them particularly attractive to donors who are still working, have sufficient retirement assets, or, in general, find themselves in a higher tax bracket.
To calculate your required minimum distribution click here.