Qualified Charitable Distribution
Save on taxes while providing support to United Ostomy Associations of America.
Did you know that giving through your IRA may help you save on taxes while providing support to United Ostomy Associations of America (UOAA)?
If you are 70½ or older and have an Individual Retirement Account (IRA), you are likely familiar with the Required Minimum Distribution (RMD). Each year, the IRS requires you to withdraw a certain amount from your IRA whether you need the funds or not, and you pay income tax on that withdrawal.
For some IRA account holders, the required minimum distribution amount is more than is needed for living expenses, and it can generate an unwelcome tax burden.
For others, there are more than enough assets available inside their IRA plans to both meet retirement needs and make a more generous charitable gift than might otherwise be possible.
With the recent changes to the tax law and itemized deductions, a Qualified Charitable Distribution (“QCD,” sometimes referred to as the “IRA Charitable Rollover”) may make sense for many people over 70½ as a way to fulfill their charitable giving while maintaining tax advantages.
When determining whether a QCD supporting UOAA would be right for you:
The IRS allows donors 70½ or older to transfer up to a total of $100,000 directly from their IRA to a charity(ies) each calendar year.
QCDs can be used to meet all or part of an IRA required minimum distribution.
You pay no income tax on the QCD. The transfer generates neither taxable income nor a tax deduction, so you benefit even if you do not itemize your taxes.
You can use a QCD from your IRA to make an outright gift to UOAA as well as to continue donating to the organization in other ways. You are not permitted to receive gifts or services in exchange for your QCD.
Contact your IRA plan administrator to make a gift from your IRA and specify that you want to make a Qualified Charitable Distribution. Please note that in order to qualify in the current tax year (i.e. 2019), your IRA custodian must take action before the end of the specified calendar year (i.e. 2019). If your IRA custodian has given you a special checkbook to write QCD checks yourself, this means that your check must clear your IRA account no later than December 31st of that specified calendar year (i.e. 2019), so plan ahead!
As with any gift that may have tax implications, check with your tax and/or financial advisor to evaluate whether a QCD is right for you this year.
If you will be making a QCD to benefit UOAA, be sure to notify us about your plans. Advance notice will help ensure your gift is properly credited and acknowledged.
If you have any questions about utilizing Qualified Charitable Distributions, please don’t hesitate to contact us at (800) 826-0826 or firstname.lastname@example.org.