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IRA Qualified Charitable Distribution

Traditional IRA owners must take annual required minimum distributions (RMD) starting at age 70 ½. These distributions are considered ordinary income which may significantly increase your tax bill. If you are age 70½ or older and plan on gifting to Turning Point, you may want to consider making a tax-free charitable donation directly from your IRA to the ministry. If executed properly, this type of gift is called a qualified charitable distribution (QCD).

IRA Charitable Rollover
IRA (Custodian)
Turning Point
Charity image

Tips for making a Qualified Charitable Distribution:

  • You must be 70½ or older to be eligible to make QCDs.
  • You may also gift a portion of your RMD and keep the balance for yourself (whatever amount you take as a regular RMD would be subject to ordinary income tax).
  • The maximum an individual may gift using a QCD is $100,000. A couple who each have their own IRA RMD may exclude $100,000 each. If their RMD is less than $100,000, they may still give up to $100,000 each and exclude this income from income tax. This is a huge benefit because funds that come from IRA distributions are considered ordinary income and are often taxed at a higher rate and may push you into a higher tax bracket.
  • QCDs must be made from Traditional IRAs. Other types of retirement plans such as 401(k)s, 403(b)s, SEPs, and SIMPLE IRAs are not eligible.

Contact us

If you have any questions about an IRA qualified charitable distribution gift, please contact us. We would be happy to assist you and answer any questions you might have.

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