Qualified Charitable Distributions

What’s a Qualified Charitable Distribution? – you might ask.   A Qualified Charitable Distribution or QCD allows the holder of a taxable IRA to make a gift to a qualified charity directly from the IRA instead of taking the Required Minimum Distribution that is mandated each year after a certain age.  

 How would that be beneficial? – you might ask. Well, there are people who are required to take the Required     Minimum Distribution from their IRA who don’t       actually want or need to do so. In fact, for some people, those distributions push the person into a higher income tax bracket and/or may trigger certain phase-outs that limit or  eliminate some kinds of tax deductions. In those situations, a person could benefit from making a gift through a QCD directly to a qualified charity. Though the distribution fulfills the required minimum distribution requirement, it isn’t actually considered income to the donor.  

 How are QCD’s made? – you might ask.  The QCD is made directly to the eligible charity from an IRA. The money transfers directly to the charity and never passes through the hands of the IRA holder. The custodian of the IRA can either send a check directly to the charity or can send it to the account holder made out to the charity and the account holder delivers it.

 Is MRC a qualified charity that can accept a QCD from an IRA? – you might ask. Absolutely. MRC and all MRC   affiliates   are   501(c)(3)   organizations   and subsequently are qualified charities to which a QCD can be made. If you have an IRA and are interested in this  method   of  giving,   consult  with  your   plan administrator to ensure your IRA qualifies and to work out details of the gift.  If you need assistance from  an  MRC   representative, please contact Todd Partin, VP of Philanthropy and  Engagement, at tpartin@mrcaff.org or 281-210-0139.  

Written by Todd Partin, MRC VP of Philanthropy

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