Gifts from an IRA distribution
A popular, tax-smart option for giving is through a qualified charitable distribution (QCD) from your Individual Retirement Account (IRA). The law permitting special treatment of QCDs from IRAs was extended by Congress and the President on December 18, 2015. To take advantage of this special opportunity, contact your IRA administrator today.
Here are some important notes and highlights of the law:
- The distribution must be made from a traditional or Roth IRA. Other retirement accounts, such as those under 401(k), 403(b), or 401(a) plans, are not eligible.
- You must be at least 70-1/2 years of age when the distribution is made.
- You can give up to $100,000 per year without including the distribution in your gross income. Married couples may be able to give up to $200,000. Amounts given count toward your annual required minimum distribution.
- Distributions cannot be made to private foundations or donor advised funds under this provision. Recipients must be qualified public charities like MPR.
- The distribution must be made directly from the IRA administrator to MPR or other qualified public charity (rather than to you).
- Gifts under this provision must be made outright, and cannot be used for any quid pro quo benefits or to establish a charitable gift annuity or charitable remainder trust.
- The law permitting this special treatment has been made permanent, with no expiration, so qualified charitable distributions now can be made each year, including 2015.
- The extension is retroactive to January 1, 2015, but for a gift to qualify for 2015, the distribution must be made to MPR by December 31, 2015.
Because circumstances may vary from person to person, donors should discuss plans with a professional tax advisor.
If this giving option is a possibility for you, below are two sample letters for communicating your wishes to MPR and to your IRA administrator. These letters will help us to provide the proper receipt for your gift.