If you are 70½ or older you may be interested in a way to help support Habitat for Humanity of Southeast Ohio and benefit this year.
A qualified charitable distribution (QCD) is a distribution from your individual retirement account (IRA) to a qualified charity. You must be age 70½ or older to make a qualified charitable distribution. A qualified charitable distribution is not taxed, nor is it included in your taxable income.
Starting in 2023, you must withdraw minimum funds each year from your IRA. Rather than take the distribution yourself, you have another option: the IRA charitable distribution. You can transfer funds from your IRA to Habitat for Humanity Southeast Ohio to support our mission. If your spouse has an IRA, they can do the same.
If certain conditions are met, QCDs also can count toward the required minimum distributions (RMDs) that people who are age 73 or older must meet each year if they have traditional IRAs (or a number of other tax-advantaged retirement plans that you can’t use for a QCD).
Also important: You don’t have to itemize on your tax return to take advantage of a QCD
Key Takeaways
- A qualified charitable distribution (QCD) is a tax-free donation from your individual retirement account (IRA) to a qualified charity.
- You must be age 70½ or older to make a qualified charitable distribution.
- A qualified charitable distribution is not included in your taxable income.
- You can’t deduct a QCD from your taxes, but the savings on your income may still make this kind of donation a tax-savvy move.
- A qualified charitable distribution counts toward your required minimum distributions (RMDs).
Easy as 1, 2…
- Contact your IRA plan administrator to make a gift from your IRA to Habitat for Humanity of Southeast Ohio.
- Your IRA funds will be directly transferred to Habitat for Humanity of Southeast Ohio to help continue our important work. Please ask your advisor to share that the gift is coming from your IRA so we can appropriately acknowledge your contribution.
