If you are 70½ years of age or older and have a traditional Individual Retirement Account (IRA), you can make an immediate impact on the congregation through a Qualified Charitable Distribution (QCD). A QCD allows you to make a gift to the Sisters, Servants of the Immaculate Heart of Mary, satisfy part or all of your annual required minimum distribution (RMD) from your IRA and exclude part or all of that distribution from your taxable gross income, thereby potentially reducing your tax liability.
For your gift to qualify
- You must be 70½ years of age or older at the time of your distribution. Although the SECURE Act raised the required minimum distribution (RMD) age to 73, the qualified charitable distribution (QCD) age remains 70½.
- The transfer must be made directly from your IRA to the Sisters, Servants of the Immaculate Heart of Mary.
- Your total annual qualified charitable distribution gift(s) cannot exceed $111,000 in the calendar year of the gift.
- Your gift must be made by December 31 of the year you decide to make the gift.
- Your gift must be outright. Generally, gifts from your IRA to donor-advised funds or charitable remainder trusts do not qualify as qualified charitable distribution gifts.
A qualified charitable distribution gift may benefit you
- As an easy and convenient way to make a tax-free gift from one of your major financial assets. You may also consider renewing or increasing your annual gift through a qualified charitable distribution;
- As an exclusion from your gross income; and
- By counting toward your required minimum distribution.
Making your gift is easy
- Contact your IRA custodian before December 31.
- Ask that your charitable distribution be made payable to Sisters, Servants of the Immaculate Heart of Mary, Monroe, Michigan.
- Transfers from your financial institution should include your name and address.
As always, we encourage you to consult with your financial and tax advisors.