Easy IRA Gifts
A Qualified Charitable Distribution can make it easy for donors to minimize the tax bite of the required minimum distribution if one is due.
This tax-free IRA-to-charity transfer is an important opportunity for donors who:
- Plan to make charitable donations
- Don't need the money from a distribution
- Want to support our mission
Qualified Charitable Distribution Requirements
The tax benefits associated with Qualified Charitable Distributions from IRAs directly to charity are subject to precise and specific requirements:
- a minimum age—the donor must be at least 70½
- a maximum amount—no more than $100,000 per year (annual aggregate limit)
- a qualified public charity—no gifts to private foundations, or to set up donor-advised funds or split-interest charitable trusts
- a direct transfer—money must be moved directly from the IRA account to the charity
Satisfy Required Minimum Distributions
Qualified Charitable Distributions can be used to satisfy all or part of a donor’s required minimum distribution if one is due. Federal legislation passed in 2019 and 2020 had an impact on required minimum distribution (RMD) rules for IRAs. Contributions to your IRA after age 70½ can impact the amount eligible for a tax-free transfer.