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Give the RMD from your IRA

What is an RMD?

An RMD is a Required Minimum Distribution. If you are 72 and older then you are required to take RMD’s from your tax deferred retirement accounts (i.e. IRA, 401k, 403b). It is the federal governments opportunity to collect taxes on tax deferred accounts. When you take an RMD it becomes taxable income in the year in which you take it. The good news is that if you do not need all or part of your RMD, you can make a gift directly to ministry with all or part of it. When you do your RMD gift then becomes a QCD (Qualified Charitable Distribution) and is no longer taxable income to you.

How does an RMD gift work?

Individuals who are 72 or older can make a Qualified Charitable Distribution (QCD) — a tax-free charitable donation made directly from their IRA. QCDs are important because they represent a rare opportunity to make a tax-free donation in an age when far fewer taxpayers are eligible to itemize deductions on returns. QCDs provide a great way for donors to support ministries because the donor can reduce the annual taxable income generated by their RMD. Planned appropriately, a QCD can also support ministry and reduce taxes on an annual basis going forward.

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Let us Help

If you are considering making a QCD from your IRA, please complete the questionnaire below and contact us so we can walk you through the process. Remember, a gift from your IRA will not qualify as a tax-free transfer if you withdraw the funds first and then make your donation. Funds from your IRA must be given directly to the ministries you want to support in order to qualify as a QCD and not count as taxable income to you.

How the process works

COVID-19 Updates

* Due to COVID-19 the CARES (Coronavirus Aid, Relief, and Economic Security) Act was signed in to law on 3/27/2020 and it removed the RMD (Required Minimum Distribution) requirement for the 2020 tax year. This means that you do not have to take an RMD this year if you do not want to, but you can still take distributions if you need to.

* The SECURE (Setting Every Community Up for Retirement Enhancement) Act was signed into law on 12/20/2019 and it raised the age requirement for being required to take an RMD (Required Minimum Distribution) from age 70 ½ to age 72.

* You are still able to make a Qualified Charitable Distribution in the 2020 tax year irrespective of the CARES Act and the SECURE Act.