The IRA Qualified Charitable Distribution (IRA QCD)—formerly known as the IRA Charitable Rollover--- allows individuals who are 70- ½ years or older to direct distributions from their IRA account to qualified domestic charities each tax year up to an annual limit of $100,000.
If you have a Required Minimum Distribution (RMD), the IRS taxes this as ordinary income so your gift to FCT will count towards it and potentially avoid tax implications. You can satisfy your RMD with a Qualified Charitable Distribution (QCD) at any time during the year you turn 72 (and up to April 1 the following year). So, if you are in a fortunate position of not needing all of your RMD, consider making a qualified charitable distribution to FCT.
IRA QCD donors can avoid taking their Required Minimum Distribution (RMD), or lessen the income they must recognize from their RMD, by directing QCD gifts from their IRA plans to FCT.
Your QCD must be made directly from your IRA custodian to Freeport Conservation Trust on your behalf. Each financial institution has its own process for initiating a qualified charitable distribution. Many retirement plan administrators require you to use their distribution forms and comply with other requirements, so follow your financial institution’s forms and procedures to ensure you receive any potential tax benefits associated with this gift.
Resources:
Program Introduction IRS doc: https://www.irs.gov/publications/p590b
Eligibility IRS doc: https://www.irs.gov/retirement-plans/retirement-plans-faqs-regarding-iras-distributions-withdrawals
If you have any questions, please contact Carrie Kinne, Executive Director at (207)865-3985 x212.
Please note: We do not give legal or financial advice, and this information should not be construed as such. We encourage you to consult your legal or financial adviser.
Support Freeport Conservation Trust with a Qualified Charitable Distribution from Your IRA. Satisfy your required minimum distribution while making a difference, here in Freeport!
Other Innovative Ways to Support FCT
If a QCD is not right for you at this time, please consider one of the many other ways you can support our mission.