The IRA charitable rollover (also called the Qualified Charitable Distribution, or QCD) is a terrific way to make a tax-free gift to Trinity College. Your gift from your IRA of up to $100,000 can satisfy your required minimum distribution without increasing your income taxes. Although you don’t get an income tax charitable deduction for the gift, you don’t pay taxes on your IRA withdrawal. In effect, the QCD is a tax-reducing and tax-free way to make a gift.
If you are 70½ or older you can tell your IRA administrator to transfer your gift directly from your traditional IRA or Roth IRA account to Trinity. If you are 72 or older the QCD will count toward your required minimum distribution. Consider these important requirements:
Donor must be 70½. The IRA owner must actually be age 70½ or older on the date of distribution.
Annual charitable rollover limited to no more than $100,000 per individual. A married couple who both have IRA’s can each make gifts up to $100,000 from IRAs that they own.
Gifts may only come from the donor’s Traditional Individual Retirement Account or Roth IRA. 401(k), 403(b), SEP IRA accounts, and other retirement accounts do not qualify.
Charitable IRA rollovers must be to a public charity. Rollovers may not go to a private foundation, nor may a charitable IRA rollover go to a charitable supporting organization or a donor-advised fund.
The gift must generate a full deduction for the amount of the rollover. The IRA donor may not receive any “quid pro quo” benefits for the donation, such as gala tickets, which would limit the donor’s deduction to only the net amount contributed.
The IRA administrator must make the charitable IRA rollover directly to charity. The donor should submit a distribution form to the IRA custodian, requesting that the check be made payable directly to charity. The check can be sent directly to charity or to the IRA owner to be forwarded along to the charity.
To learn more visit legacy.trincoll.edu/ira.
