Qualified Charitable Distribution
Maximize Your IRA and Tax Benefits
If you're at least 70½ years old, you're eligible to make a Qualified Charitable Distribution (QCD) from your traditional or Roth IRA, with amounts distributed to support VIA excluded from federal taxable income.
- You must be at least 70½ years old on the date of the distribution to VIA.
- Distributions must be made from a traditional or Roth IRA, including inactive SEP and SIMPLE plans. Distributions from any other type of retirement plan (401(k), 403(b), 457, Keogh, and active SEP and SIMPLE plans) will NOT qualify.
- QCD distributions are limited to $100,000 in total per year.
- A distribution must be made outright to a qualified public charity—it cannot be used to fund a charitable remainder trust, gift annuity, donor advised fund, or family foundation.
- Your plan administrator must transfer the funds directly–you may not receive the distribution first and then transfer it to the charity.
- The distribution must be received by the charity on or before December 31 to be counted in the tax year.
- Each distribution will be excluded from federal taxable income.
- Because the distribution is not taxable income, you cannot claim a deduction for federal tax purposes. Some states may treat distributions as income followed by a deduction. Please check with your tax advisor to learn more.
- QCDs count toward your required minimum distribution (RMD) if you are required to take one. Using a QCD to make charitable gifts will reduce the value of your IRA and taxable RMDs in future years.
- Email Nicole Thomas for additional information on QCD gifts to benefit VIA, or to request a tax acknowledgement letter if you’ve recently made a QCD gift.
- Seek the advice of your financial or legal advisor.
- Read this FAQ resource from FreeWill, a trusted partner.