IRA Qualified Charitable Distribution
NEW LAW: No Required Minimum Distributions in 2020!
As a part of the CARES Act, Congress has temporarily eliminated most required minimum distributions (“RMD”) from retirement plans during 2020. Check with your financial advisor to see how this might affect you. Even without an RMD, a QCD remains a great way to make tax advantageous contributions. Learn more about the CARES Act.
The qualified charitable distribution (also referred to as the IRA charitable rollover) is permanent. Donors 70 ½ and older are eligible to give up to $100,000 directly from their IRA to Mount Holyoke tax-free.
How to make it happen:
Contact your advisor, retirement plan administrator, or plan fiduciary company to initiate a transfer. You may also complete this form, which is accepted by most IRA custodians. Gifts from an IRA Checkbook* must be received by December 13.
“I started making gifts from my IRA for my 50th reunion. Being able to make these distributions as a charitable gift is a wonderful way to make a contribution to something you really care about.”
How it works:
- The donor must be age 70 ½ or older when the gift is made.
- The gift must come from an IRA account. (401(k), 403(b), SEP IRA accounts, and other retirement accounts do not qualify.)
- The gift must come directly from your IRA administrator to Mount Holyoke.*
- Total QCD gifts in any one year cannot exceed $100,000.
- If you don’t itemize deductions and are not yet required to take your RMD, a QCD offers all of the benefits of an itemized income tax charitable deduction.
- If you are age 72 or older and must take your RMD, a QCD can satisfy your RMD without increasing your income taxes.
- The gift from your IRA will not be available as an income tax charitable deduction.
- The gift from your IRA will be excluded from income.
- Please note that gifts given directly from your IRA cannot be used to establish life income gifts such as charitable gift annuities and charitable trusts.
Please email us or call 800-MHC-GIVE with any questions so we can help you to take advantage of this special gift opportunity.
* If you have checkwriting priviledges on your traditional IRA account and are permitted to send a QCD directly to a charity, it must be received by the College no later than December 13. Gifts sent directly to the College by your IRA administrator must be sent to the College by December 31.