IRA Qualified Charitable Distribution

How IRA Charitable Distribution Works

Qualified donors can use their Individual Retirement Account (IRA) to make a direct gift to Verbum Dei Jesuit High School and avoid income tax on the distribution.

For the IRA transfer to be eligible:

• The donor must be 70½ years of age or older at the time of the gift.
• Charitable distributions are limited to $105,000 per IRA holder each tax year.
• The transfer must come from a traditional or Roth IRA (other retirement plans such as pension, profit sharing, 401(k), 403(b), and similar accounts are not covered under this tax rule).
• The transfer must be made directly from the IRA administrator to the charity.
• The funds must be directed to one or more qualified charities.

Please note that you cannot claim a charitable deduction for this type of contribution. The tax advantage lies in excluding the contribution from your gross income, thereby avoiding federal income tax on the amount transferred.