IRA Qualified Charitable Distributions

“What we do with our money is our gift to God.” St. Anthony of Padua Parish, Effingham, IL

Help your Parish or a ministry you care about with a gift from you IRA

If you take a distribution from your IRA this year, you will likely pay more in taxes and may even reach a higher tax bracket. Instead, we invite you to rollover part of your IRA’s RMD, or ‘required minimum distribution,’ to impact a Catholic ministry and at the same time reduce your tax bill while supporting its mission.

How to make an IRA Qualified Charitable Distribution (QCD)

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.

  1. Download the IRA Request for Distribution (QCD) form
  2. 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 hotchkiss@diocesekcsj.org or Fax 816-756-5089.
  3. The diocese will send the proceeds to the parish, school, or ministry you designated on the form.
  4. Contact Stewardship and Development’s Planned Giving office at (816) 714-2346 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.

Please note that failure to include our donation form, in the link above, with your donation will prevent us from knowing how to allocate the funds from your donation.

Who can make IRA Qualified Charitable Distributions (QCD) and what are the benefits?

Whereas you’re not required to take a distribution until 72 years old, once 70 1/2 you can direct up to $100,000 each year from your IRA. When the funds are directed to a charity, such as your parish or preferred ministry, rather than directly to you, you will not have to pay taxes on the distribution.

So, if you are able, why not use your IRA to support your Catholic Community?

  • Although beginning in 2020, Required Minimum Distributions (RMD) do not have to be taken until you turn 72, you can still make Qualified Charitable Distributions beginning at 70 ½.
  • Contributions must be made from traditional IRAs.
  • Distributions must go directly from your IRA account to a qualified charity.

Tax Treatment

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.

 

 

 

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