Qualified Charitable Distributions

To get started, here are the qualifications for a Charitable Contribution from your IRA.

  • Must be over 70 ½ years old
  • Your distribution counts towards your Required Minimum Distribution (RMD)
  • You can contribute more than your RMD as long as you do not exceed $100,000 in a calendar year
  • You may not receive anything (other than an intangible religious benefit) from the charity as quid pro quo for your contribution
  • The charity must provide you an acknowledgement stating the amount of the charitable distribution and that no goods, services, or benefits of any kind were or will be provided to you in consideration for the distribution from the IRA
  • Also, the contribution cannot go to a donor-advised fund, supporting organization or private foundation
  • You cannot make the charitable IRA distribution from Simplified Employee Plans and Savings Incentive Match Plans for Employees if an employer contribution is made for that year

If you can afford to donate IRA money, you can benefit tax-wise if you match one of more the following profiles.

  • You don’t itemize deductions (under the normal rules only itemizers get any income tax benefit from charitable donations).
  • You want to avoid being taxed on the required minimum distribution amount that you must take from your IRA

Register for a QCD