DID YOU KNOW
If you are 70 1/2 or older, you can make a nontaxable transfer of up to $100,000 from your traditional IRA directly to a charity that is eligible to receive tax-deductible contributions.
The transfers are called qualified charitable distributions (QCD) and will count towards your qualified minimum distribution. If you file a joint return, your spouse can also have a QCD and exclude up to $100,000. Unlike typical IRA distributions, these direct gifts to charity are not added to your taxable income.
In order to make a QCD, simply ask your IRA trustee to:
- Directly transfer the desired amount to your eligible charity or ask the trustee to write a check payable to the charity that you will deliver.
- When preparing your year-end tax return, include the QCD amount on line 15a of your Form 1040, along with any other 1099-R distributions.
- Subtract the amount of your QCD and report the remainder (even zero if the QCD was your only IRA distribution) on line 15b and enter QCD next to line 15b. It’s as easy as that.
(Note: you cannot claim an itemized charitable deduction for the same QCD donation.)
Cancer Recovery Foundation International
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