IRA Charitable Rollover
Did you know the building fund qualifies for tax-free IRA distributions?
It's true! Corpus Christi Chapel is a qualified 501(c)(3) non-profit organization and is eligible to receive tax-free donations directly from certain IRAs. For years members of our community have used this process provided by law to maximize their giving to the building fund rather than Uncle Sam.
The simple way it works:
Instead of taking a normal IRA distribution to a personal account, paying tax, and then making a donation from your personal account, a donation can be made directly from qualifying IRAs to the building fund without any taxation. Depending upon one's tax rate this could be a significant increase in the impact of your donation without costing an extra penny!
What's the catch?
To qualify for the calendar year, donations must be made by the end of December. Otherwise, there really isn't one - if you qualify it's a very straightforward process which allows donors to maximize their impact to causes they care about.
Next Steps to Smarter Giving:
If you think this may be a tool you or someone you know can use:
- Confirm your eligibility for Qualified Charitable Distributions from you IRA with your tax professional and investment advisor
- If you are eligible arrange for a check to be made out to Corpus Christi Chapel directly from the account. (Some members of our Chapel community have checkbooks specifically for the purpose of making direct distributions to qualifying charities such as Corpus Christi Chapel.)
If you have any questions you can reach out to Fr. van Zee at [email protected]
Details, Eligibility and Donation Limits
Certain IRA holders have the opportunity to make tax-free distributions from their IRAs to qualified charitable organizations. For tax-free eligibility, the Qualified Charitable Distribution (QCD) must be sent directly from the IRA payable to the receiving qualified 501(c)(3) non-profit organization. The distribution may be processed by the IRA custodian or by the IRA owner via checkwriting.
Although the SECURE Act raised the required minimum distribution age to 72, IRA holders can continue to make QCDs at age 70 1/2.* In addition, beneficiaries of inherited IRAs who meet the age requirement can also take advantage of QCDs. For those who qualify, the maximum IRA charitable distribution is limited to $100,000 per individual per tax year. Any distribution in excess of this limit will not qualify for the tax exclusion benefit and will be treated as ordinary income. The provision applies for traditional, Roth, and inherited IRAs, but does not typically apply to distributions from “active” SEP IRAs, SIMPLE IRAs, or any Qualified Plan.
* Deductible contributions to your traditional IRA after age 70 1/2 may reduce your ability to make tax-free QCDs in the future.