Easy IRA Gifts
A qualified charitable distribution can make it easy for donors to minimize the tax bite of the required minimum distribution if one is due.
This tax-free IRA-to-charity transfer is an important opportunity for donors who:
- Plan to make charitable donations
- Don't need the money from a distribution
- Want to support our mission
Qualified Charitable Distribution Requirements
The tax benefits associated with qualified charitable distributions from IRAs directly to charity are subject to precise and specific requirements:
- a minimum age—the donor must be at least 70½
- a maximum amount—no more than $100,000 per year (annual aggregate limit for 2023)
- a qualified public charity—no gifts to private foundations, or to set up donor-advised funds or split-interest charitable trusts
- a direct transfer—money must be moved directly from the IRA account to the charity
Satisfy Required Minimum Distributions
Qualified charitable distributions count toward a donor’s required minimum distribution (RMD) if one is due. Contributions to your IRA after age 70½ can impact the amount eligible for a tax-free transfer.
Consider a New Option
Starting in 2023, IRA owners who are 70½ or older can make a one-time, tax-free IRA distribution to create a new charitable gift annuity or charitable remainder trust ($50,000 maximum in 2023). This distribution counts toward a donor’s RMD if one is due. Spouses may contribute up to $50,000 each from their individual IRAs into a single charitable remainder trust or a joint-life charitable gift annuity. Payments may only go to you and/or your spouse.