IRA Qualified Charitable Distributions
“What we do with our money is our gift to God.” St. Anthony of Padua Parish, Effingham, IL
Every time you give to your parish, a ministry or worthy cause, you are giving a gift to God. If you can live without using withdrawals from your IRA, giving from an IRA account is one of the smartest ways to make a real impact for your parish, a ministry or the diocese.
Eligibility for an IRA Qualified Charitable Distribution (QCD)
- You must be 70 1/2 years old or older when the distribution is made.
- Contributions must be made from traditional IRAs.
- Distributions must go directly from your IRA account to a qualified charity.
The tax treatment for an IRA QCD may make it possible for you to make a larger gift to your chosen ministry.
- IRA QCDs are excluded from taxable income.
- Taxpayers who do not itemize benefit most from an IRA QCD, since they do not receive a tax benefit for charitable gifts.
- You can give up to $100,000 per year.
- Taxpayers who’ve reached the limit for charitable giving (usually 60% of adjusted gross income) can give more – up to the IRA limit.
- Your QCD can count towards your Required Minimum Distribution (RMD) Contact your IRA administrator for the amount of your RMD.
Withdrawals from other qualified retirement plans (e.g. 401(k)s) are treated differently. The withdrawal may be eligible for a deduction, if you can itemize, but it also creates taxable income.
How to make an IRA Qualified Charitable Distribution
If your parish prefers to process your IRA donations, please contact parish staff.
Otherwise, the diocese processes IRA distributions as a service to our parishes and ministries.
- Download the IRA Request for Distribution form
- Send the form to your IRA administrator with instructions to send the distribution to the diocese. Please send a copy to Stewardship and Development at firstname.lastname@example.org or Fax 816-756-5089.
- The diocese will send the proceeds to the parish, school, or ministry you designated on the form.
- Contact Stewardship and Development at (816)714-2363 or (816)714-2359 if you have questions or need more information.
Please consult with your own attorney and other professional advisors regarding your personal tax and financial situation.