Making a Qualified Charitable Distribution from your IRA

A Great Way to Support The Lyceum!

Consider making a non-deductible gift to The Lyceum by using a Qualified Charitable Distribution (QCD)

Typically, if you are age 72 or older, IRS rules require you to take required minimum distributions (RMDs) each year from your tax-deferred retirement accounts. In 2020, the CARES Act temporarily waives required minimum distributions (RMDs) for all types of retirement plans (including IRAs, 401(k)s, 403(b)s, 457(b)s, and inherited IRA plans). This includes the first RMD, which individuals may have delayed from 2019 until April 1, 2020. However, you may still want to consider making a charitable gift using your retirement plan.

A few points to know:

  • You must be at least 70½ years old at the time you request a QCD. If you process a distribution prior to reaching age 70½, the distribution will be treated as taxable income.
  • For a QCD to count toward your current year’s RMD, the funds must come out of your IRA by your RMD deadline, which is generally December 31 each year.
  • Funds must be transferred directly from your IRA custodian to the qualified charity. This is accomplished by requesting your IRA custodian issue a check from your IRA payable to Arrow Rock Lyceum Theatre. You can then request that the check be mailed to us, or forward the check to the theatre yourself.
  • The maximum annual distribution amount that can qualify for a QCD is $100,000. This limit would apply to the sum of QCDs made to one or more charities in a calendar year. If you’re a joint tax filer, both you and your spouse can make a $100,000 QCD from your own IRAs.

Leverage Your Gift With The Lyceum’s 60 for 60 Backer Challenge!

In honor of our 60th Anniversary, all NEW gifts or the INCREASED portion of renewed gifts will be matched up to a total of $60,000. Help us meet the challenge!

Consult your financial planner or tax advisor to determine if making a QCD is appropriate for your situation.