The federal government allows eligible individuals to make charitable contributions directly from their IRA. These donations are called qualified charitable distributions (QCD’s). QCD’s offer several benefits over simply writing a check to a charitable organization.
What is a qualified charitable distribution?
A qualified charitable distribution is a nontaxable distribution made directly by the trustee of an IRA to a charitable organization.
What are the advantages of making a qualified charitable distribution?
- Your donation is made with pre-tax dollars.
- Your donation counts toward your required minimum distribution.
- The amount you donate will not be included in your taxable income.
What are the requirements for qualified charitable distributions?
- You must be at least 70½ years of age at the time of the distribution.
- You must have an acknowledgement from the organization of the gift (Created Equal sends annual giving summaries in January).
- The amount of all your QCD’s exceeding $100,000 will be counted as a regular, taxable distribution.
- You cannot claim a charitable contribution deduction for a QCD.
How can I make a qualified charitable distribution?
To make a QCD, you will need to ask your IRA provider to send a check to Created Equal. Most IRA Providers will have an IRA Distribution form for you to fill out where you can indicate that this distribution is a QCD. Instructions for making a QCD are included for several of the top IRA providers below.
Have your IRA Provider send checks to:
P.O. Box 360502
Columbus, OH 43236
DISCLAIMER: Created Equal does not provide tax, legal, financial, or accounting advice. This page is for informational purpose only, and should not be relied upon for tax, legal, financial, or accounting advice. Consult your financial advisor before making a QCD.
For more information please refer to the IRA’s Publication 590-B under the “Qualified Charitable Distributions” section.