IRA Qualified Charitable Distributions

The IRA Charitable Rollover provision allows individuals who have reached age 70 1/2 to donate up to $100,000 to charitable organizations directly from their Individual Retirement Accounts (IRA), without treating the distribution as taxable income. Learn more here.

Here are the requirements and restrictions for making a qualified charitable distribution (QCD):

  • The donor must be 70½ or older.

  • The gift must be made directly from the IRA to an eligible charitable organization.

  • Gifts to all charities combined cannot exceed a total of $100,000 per taxpayer for the year.

  • The gifts must be outright, and no material benefits can be received in return for the gifts. Thus a transfer for a gift annuity, charitable remainder trust, or pooled income fund is not permitted.

  • Gifts cannot be made to a donor advised fund, supporting organization, or private foundation.

  • The gift is not included in taxable income, and no charitable deduction is allowed.

  • The gift can be made only from an IRA. Gifts from 401(k), 403(b), and 457 plans are not permitted.

A Qualified Charitable Distribution (QCD) may be the right gift for you to make if:

  • You want to make a charitable gift and your IRA constitutes the largest share of your available assets.

  • You are required to take a minimum distribution from your IRA, but you do not need additional income. Your QCD can count towards your required minimum distribution (RMD)!

  • You do not itemize your deductions. In that case a personal IRA distribution increases your taxable income without the benefit of an offsetting deduction. An IRA charitable rollover will not be included in your taxable income even if you do not itemize other deductions.

  • You live in a state where retirement plan distributions are taxable on your state income-tax return, but your state does not allow itemized charitable deductions.

  • You would like to make an additional charitable gift, but it would not be deductible because of the annual limitation of 50 percent of adjusted gross income for charitable contributions. The IRA charitable rollover is equivalent to a deduction because it is not included in taxable income.

  • You have an outstanding pledge to a charity. The IRA charitable rollover can satisfy a pledge without violating rules against self-dealing.

Here are the steps to take to make a gift:

  • If you want to make a qualifying transfer, contact your IRA administrator and instruct that person to transfer funds to the charity(ies) you designate.

  • Contact Us directly. We will answer your questions and provide instructions for completing your gift.

Did You Know?

You can also support our mission for years to come. Simply name Students Run LA as a beneficiary of your IRA account, and the remaining assets (or a portion) of the account will be distributed to create opportunities for SRLA students on their life-changing journey to the marathon finish line and beyond.

Sample Beneficiary Designation:

Legal name: Students Run America dba Students Run LA
Address: 5252 Crebs Ave., Tarzana, CA 91356
Federal Tax ID number: 95-4430502

The content found on this site is general in nature and intended to be used for informational purposes only. It should not be relied upon as legal, tax, accounting or other professional advice. To determine how a gift or estate planning decision might affect your particular circumstances, you should consult an attorney, financial advisor or other qualified professional.