Great News – the Consolidated Appropriations Act of 2016 made permanent qualified charitable distributions (QCDs) from individual retirement accounts. BOTTOM LINE – You can give money to your favorite ministry straight from your IRA!
Benefits of QCDs
A QCD permits annual direct transfers to a qualified charity totaling up to $100,000 of tax-deferred IRA savings. Importantly, QCDs automatically satisfy required minimum distributions (RMDs) for the year when the QCD is made. That’s a real advantage for a charitably minded IRA owner who doesn’t need RMDs to live on.
Only individuals who’ve attained age 70½ may make QCDs.
The charity that receives the donation must provide the same contribution acknowledgment needed to claim a charitable income tax deduction.
QCDs may be made from any IRA or individual retirement annuity, but not from a simplified employee pension, a simple retirement account or an inherited IRA.
Making the Contribution
To make a contribution, contact the intended charity to determine the exact payee name for the check. Then, using that name, instruct your IRA trustee or custodian to make a transfer from the IRA directly to charity. Many trustees and custodians already have forms and procedures in place to make this transfer, in fact, check your IRA holder’s website for details.
Be sure to obtain a letter of acknowledgment from the charity. So, if you can, use your IRA to give to TriCord Mentors (as long as you are 70-1/2 or older!).
Feel free to contact us with questions or for more information at 916-243-8852 or firstname.lastname@example.org.
Thank you for considering TriCord Mentors as a beneficiary. We are blessed with your support and prayers for much-needed mentoring for theological education leaders!