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Your IRA can be a tax-savvy way to support American Ancestors now. A Qualified Charitable Distribution (QCD), also known as an “IRA Charitable Rollover,” allows you to make a tax-free gift to American Ancestors from your IRA while potentially satisfying your Required Minimum Distribution (RMD).
How to Qualify
To benefit from a QCD, please ensure that you meet these requirements:
- Age: You must be at least 70½ years old at the time of your gift.
- Direct Transfer: The funds must go directly from your IRA to American Ancestors.
- Annual Limit: For 2025, your total QCD gifts cannot exceed $108,000.
- Traditional or Inherited IRA: Your QCD gifts must be from a traditional or inherited IRA (inactive SIMPLE IRAs and inactive SEPs are also eligible).
What is a Required Minimum Distribution?
When you are age 73 or older, you must take a Required Minimum Distribution (RMD) from your IRA each year. You must include your RMD in your taxable income, which increases your income tax and may have other tax effects, such as increasing the cost of your Medicare insurance. The fraction of your IRA balance that you must withdraw increases each year.
Benefits of a Qualified Charitable Distribution
- Tax Advantages without Itemizing: Even if you do not itemize your deductions, a QCD offers benefits similar to an itemized income tax charitable deduction.
- Satisfy RMD Requirements: If you are 73 or older and required to take a Required Minimum Distribution (RMD) from your IRA, a QCD gift can satisfy your RMD without increasing your taxable income.
- Direct Your Impact: You may designate your gift toward a specific program or area of interest within American Ancestors.
- Immediate Impact: Your gift will make an immediate difference to American Ancestors.
How to Make a QCD to American Ancestors
- Contact Your IRA Administrator: Request a Qualified Charitable Distribution directly to American Ancestors. This ensures that your distribution is sent tax-free to us.
- Notify American Ancestors: Let us know about your QCD so we can follow up with your administrator if needed and thank you for your generosity.
Consult with Your Advisors
We encourage you to speak with your financial and tax advisors before making a gift. The IRS offers tax incentives for charitable giving, enabling you to support a cause you value while potentially reducing your tax burden.
Thank you for considering a generous gift to help sustain American Ancestors.