Give the RMD from your IRA
What is an RMD?
An RMD is a Required Minimum Distribution. If you are 73 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 73 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.
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
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1. Complete and Submit QCD Questionnaire
There are various factors to consider when making a QCD gift. The QCD Questionnaire is designed to l help you navigate those factors. Click here in order to correctly complete your QCD gift.
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2. Meet with GBF staff member for gifting consultation
The Foundation’s professional staff is available to meet with you in person, over the phone, or via an online video call to go over your QCD Questionnaire and giving objectives. contactus@gbfoundation.org
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3. Create a QCD Gift Instruction Form
The QCD Gift Instruction Form provides you with a printout of the basic information you need to begin the gift process with financial advisor or plan administrator.
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4. Deliver the Form to Your Financial Advisor
Once you have completed the QCD Instruction Form, you will need to deliver it to your financial advisor or plan administrator. Your financial professional will then provide you with the appropriate paperwork to complete the gift. If you have any problems along the way, our staff is available to assist you in the process. Also, don’t forget to inform your tax preparer about your gift.
2022 New Law Updates
* The SECURE (Setting Every Community UP for Retirement Enhancement) Act 2.0 was signed into law on December 29, 2022 and it raised the age requirement for being required to take an RMD (Required Minimum Distribution) from age 72 to age 73 in the year 2023. It also increases the age from 73 to 75 in the year 2033.
