IRA Qualified Charitable Distribution
A Qualified Charitable Distribution (QCD), also known as a Charitable IRA Rollover, allows individuals 70 ½ and older to make a sizable gift from an individual retirement account (IRA) to Moody Bible Institute AND receive significant tax benefits in return.
Benefits of A QCD May Include:
- Counts toward your required minimum distribution (RMD) for the year.
- Charitable distributions reduce your taxable income. Advantageous even if you don't itemize deductions on your tax returns!
- Gifts are tax-free to the charity so your entire gift will go to Moody Bible Institute!
- Gifts from your IRA can be used to fulfill prior charitable giving pledges.
Requirements to Gift A Qualified Charitable Distribution
To make a charitable gift to Moody Bible Institute from your IRA, please consider the following:
- IRA holder must be age 70 ½ or older at the time of the gift.
- Give up to $100,000 per year as a single person or $200,000 per year as a married couple from separate accounts.
- Gifts must be outright gifts to Moody Bible Institute for which the donor receives no benefits.
- Distributions to donor-advised funds, charitable trusts, or for charitable gift annuities are not permissible.
- Distributions may only be made from traditional IRAs or Roth IRAs; other retirement accounts are not eligible.
- There is no federal income realized and no income tax deduction for the donor (unless made from documented after-tax contributions to the IRA).
- Some states treat an IRA QCD like a withdrawal for state tax purposes, but this varies from state to state.
How to make A Charitable Gift From Your IRA
Simply contact your IRA plan administrator, and inform them you want to make a charitable gift. They will provide you with the forms required to do so or you may use our simple IRA Qualified Charitable Distribution Request Form. Some IRA plan administrators have simplified the process even further, providing individuals with checks you can write out for qualified charitable distributions directly from your account.
It may be that an estate gift from an IRA to Moody (at the IRA account owner's passing) may be more appropriate for those donors who do not have sufficient assets to comfortably consider a lifetime charitable IRA rollover. This can be done by naming Moody Bible Institute as a beneficiary of the IRA on the beneficiary designation form available from the IRA's custodian. No estate or income taxes will be due on the gift to Moody.
Please speak with your financial advisor to determine if an IRA Charitable Distribution gift now or naming Moody as a beneficiary of your IRA for a future Legacy gift may be a good fit for you and your charitable goals.
To learn more or to request helpful free resources, including Moody's IRA Qualified Charitable Distribution Request form, please complete this form to access our online library or contact us. We would be happy to assist you and answer your questions.