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Making a Qualified Charitable Distribution from your IRA

Making a Qualified Charitable Distribution from your IRA

In 2015, Congress voted to make Qualified Charitable Distributions (QCDs, also known as Charitable Rollover) a permanent part of the tax code.  This allows you to make charitable contributions from your IRA without claiming increased income and your gift also counts toward your Required Minimum Distribution (RMD).

 This is an ideal opportunity for someone who has planned well for retirement to meet their RMD without claiming it all as taxable income.  Your gift is also tax deductible so if you itemize your taxes, you may receive an even bigger tax break.  It’s a win-win!

Who qualifies?

Individuals who are 70 ½ and older with an IRA account.

What account can I transfer from?

Your gift must be transferred directly from your Traditional or Roth IRA to The Lyceum.

When is the deadline for 2017?

In order to meet your RMD for 2017 and to take full advantage of the tax write-off, your check must be dated and postmarked on or before December 31, 2017.

How much can I transfer?

You can transfer any amount up to $100,000 annually.  This amount will count towards your RMD and will not be treated as taxable income.

How do I make a Qualified Charitable Distribution?

Contact your IRA provider or use your IRA checkbook to make your gift. Please tell your broker or fund manager to name you as the donor on the transfer, and if your gift is intended as your annual Backer gift or one-time contribution, have the broker specify that as well. IMPORTANT: Your gift must come directly from your IRA account in order to be tax-free.  If you withdraw funds from your IRA in order to donate, it will be treated as taxable income.