Qualified Charitable Distribution (IRA Charitable Rollover)

The QCD allows individuals 70 ½ and older to make direct distributions up to $111,000 per year to 501(c)(3) charities without having to count the distributions as income for federal income tax purposes. No charitable deduction may be taken, but if you are 73 or older, distributions will qualify for all or part of the IRA owner's required minimum distributions.

Yes, every individual who is the owner of a traditional IRA can use the Qualified Charitable Distribution for up to $111,000 each year.

The QCD allows individuals 70½ and older to make direct distributions up to $111,000 per year (2026) to qualifying public charities without having to count the distributions as income for federal income tax purposes. No charitable deduction may be taken, but if you are 73 or older, distributions can satisfy all or part of your required minimum distribution. (Note: Donor-advised funds, private foundations, and supporting organizations do not qualify.)

Up to $111,000 per year. The distribution must be outright to charity.

Distributions must come from your IRAs directly to Nourishing Hope. If you wish to help us with a gift from another retirement asset such as a 401k, 403b, etc., you must first roll those funds into an IRA. Then you can direct the IRA administrator to distribute the funds from the IRA directly to Nourishing Hope.

You may use a QCD to fund certain life income gifts. For example, you can donate up to $55,000 from your QCD to fund a charitable gift annuity (CGA) in a one time election. Other life income gifts, such as charitable remainder trusts, are subject to additional restrictions. Because the rules can vary, we encourage you to contact us to discuss your options and determine what may be right for your situation.

No, not at this time.

We will give you full credit for the entire gift amount. You will also receive a letter, which states that the gift qualifies as a QCD to use for tax reporting purposes.

• Federal - You do not recognize the distribution to Nourishing Hope as income, provided it goes directly from the IRA administrator to us. Therefore, you are not entitled to an income tax charitable deduction for your gift.
• State - Each state has different laws, so you will need to consult with your own advisors. Some states have a state income tax and will include this distribution as income. Within those states, some will allow for a state income tax charitable deduction and others will not. Other states base their income tax on the federal income or federal tax paid. Some states have no income tax at all.

Share this information with your financial advisor. Our office can provide additional information and examples of this gift plan. Call us. We would be delighted to help.

We offer a sample letter you can send to your plan provider to initiate the distribution. Please let your plan administrator know this gift must be sent prior to December 31 to qualify as a charitable distribution for the tax year. Make sure you contact us by phone at 773-849-1670 when you direct the distribution so we can look for the check from your IRA administrator.