If you are of the age that you have to take a required minimum distribution (RMD) from your IRA, did you know that you can transfer up to $100,000 each year directly to a qualified charity like the Catholic Community Foundation, your Catholic Parish, School or other Catholic Program or Ministry?  By rolling over your IRA distribution directly to a qualified charity, it qualifies as your RMD and you avoid having to include the distribution as taxable income.  Prior to 2020, individuals were required to take RMDs beginning in the year in which they turned 70½.  The SECURE 2.0 Act increases the age at which RMDs begin to age 73 for those individuals who turn 72 on or after January 1, 2023.  Despite the delay in the starting age for RMDs, individuals can still make Qualified Charitable Distributions (QCDs) from their IRAs as early as age 70½.

You can…

  • Distribute up to $100,000 in a calendar year from your IRA (regardless of the size of your RMD) directly to the Catholic Community Foundation and/or other Catholic Programs or Ministries, tax free
  • If your spouse has a separate IRA, he or she can also make a QCD up to $100,000 per year
  • Transfer your full RMD or only a portion of it
  • Decide each year if and/or how much of your RMD to use
  • Support multiple charities

Benefits of Using an IRA Charitable Rollover

  • Entitles you to tax benefits without requiring you to itemize your deductions
  • The distribution counts towards your required minimum distribution
  • The distribution is not included in the income on which your federal income taxes will be based (thus reducing your taxable income)
  • Because the distribution is tax free, you can increase your giving without costing you one additional penny

*The Catholic Community Foundation of Southwest Florida does not provide legal, tax or financial advice.  When considering gifting options, seek the advice of your own legal, tax and/or financial professionals.

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