IRA charitable gifts for donors aged 70½ and older
Direct rollovers from qualifying retirement accounts can be a great philanthropic choice if you’re seeking tax relief and impact.
Recent tax law changes may be confusing, but there’s one charitable giving vehicle that carries a double benefit for certain donors. Formally called the Qualified Charitable Distribution, the idea is simple: donors aged 70½ and over can directly transfer funds from their IRA to PEA; these funds count toward required minimum distributions without adding to taxable income (unlike regular IRA withdrawals which increase taxable income).
At a time when many taxpayers are unable to itemize, thereby losing the tax deduction for charitable contributions, the IRA charitable rollover provides a way to exclude from taxable income the full value of a gift, if you follow the rules.
QCD requirements
- You must be 70½ or older.
- The gift must be made directly from your IRA to PEA.
- QCD gifts to all charities combined cannot exceed an annual maximum of $100,000 per taxpayer in a calendar year.
- The gift must be outright.
- For the QCD to count toward required minimum distribution, you must meet the deadlines (generally by December 31).
How do I initiate an IRA charitable gift?
- We recommend that you check with your financial advisor to make sure that a QCD is appropriate for your circumstances.
- Consult the PEA Planned Giving page and contact Phil Perham (603-777-3594, pperham@exeter.edu) with any questions about how to make your gift.
- Ask your IRA administrator to initiate the transfer of funds.