IRA Qualified Charitable Distribution

Make a Difference with Your IRA: A Tax-Smart Giving Opportunity

Did you know that once you reach age 73, the IRS requires you to take annual withdrawals from your IRA, known as Required Minimum Distributions (RMDs)? These withdrawals are taxable income, and failing to take them could result in significant penalties.

For individuals and couples aged 70½ and older, there’s a tax-efficient way to turn these RMDs into impactful charitable contributions. Through a Qualified Charitable Distribution (QCD), often referred to as a charitable IRA rollover, you can direct up to $105,000 annually from your IRA to one or more qualifying charities, including Verbum Dei Jesuit High School. Married couples filing jointly may each contribute up to $105,000 per year, for a combined total of $210,000.

By leveraging QCDs, you can reduce your taxable income while supporting transformative education and life-changing opportunities for our students. Talk to our Mission Advancement team or your financial advisor to learn how you can make a difference today.

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.