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Qualified Charitable Distributions
Commonly known as an "IRA charitable rollover," a qualified charitable distribution, or QCD, can be made from a Roth or traditional IRA.
There are specific rules you must follow for this to qualify as a gift.
- You must be 70½ years old or older at the time of the gift.
- The transfer must be made directly to a charitable organization like RUSH Copley.
- You can give up to $100,000 per year, and your spouse can also give up to $100,000 from their IRA.
- You can make a QCD only to a public charity, not to a private foundation or donor-advised fund.
Charitable Gift Strategy: 70½ or Older? Make a QCD Gift
There are multiple benefits of making a QCD gift. This gift is removed from your IRA without you claiming it as income. If you have reached the age where you must take a required minimum distribution, or RMD, your QCD gift can satisfy some or all of your RMD - reducing the amount you can be taxed on.
Recent legislation now allows for the $100,000 maximum annual QCD to be indexed for inflation beginning in 2024. It is quite simple to make this gift. Ask your IRA administrator for a form and any related procedures. |
