Charitably minded individuals have the opportunity to contribute to their favorite charitable causes by transferring money from an Individual Retirement Account (IRA) directly to charity through a Qualified Charitable Distribution (QCD). Although the new Required Minimum Distribution (RMD) age is 73, QCDs can begin at age 70 ½. A transfer of up to $105,000 in 2024 (indexed for inflation) can be made to one or more charities and/or ministries. Unlike a regular distribution from an IRA, a QCD is not taxable to the IRA owner. Thus, the effect of using a QCD is increased gifts for the owner’s favorite ministry and reduced income taxes, which may include Medicare taxes.
A married couple could donate up to $210,000 provided each spouse owns at least one IRA and can each make a qualified charitable distribution of $105,000 from their plans.
Our partners in ministry at the Christian Church Foundation can help you with the appropriate paperwork so your IRA can be used to further the mission of the church.