Individual Retirement Account (IRA)/Qualified Charitable Distribution (QCD) Information

For those 70 ½ years and older, you can give any amount (check with your financial advisor for the maximum amount each year) from your IRA directly to a qualified charity such as the Society of Sponsors of the United States Navy without having to pay income taxes on the money. Gifts of any value (at the maximum for that year or less) are eligible for this benefit and you can feel good knowing that you are making a difference to the Society of Sponsors. This popular gift option is commonly called the IRA charitable rollover, but you may also see it referred to as a Qualified Charitable Distribution (QCD).  You may wish to consider this if you are required to take minimum distributions, you can use your gift to satisfy all or part of your obligation.  You pay no income taxes on the gift. The transfer generates neither taxable income nor a tax deduction, so you benefit even if you do not itemize your deductions.  Since the gift doesn’t count as income, it can reduce your annual income level. This may help lower your Medicare premiums and decrease the amount of Social Security that is subject to tax.  Please note that directed gifts to a charity like the Society of Sponsors can only be made from an IRA.  Under certain circumstances, however, you may be able to roll assets from a pension, profit sharing, thrift savings plan (TSP), 401(k) or 403(b) plan into an IRA and then make the transfer from the IRA directly to the Society of Sponsors of the USN. To determine if a rollover to an IRA is available for your plan, speak with your plan administrator.  Beginning in the year you turn 73, you can use your gift to satisfy your Required Minimum Distribution (RMD).  If you elect to participate in an IRA/QCD, we must receive your gift by December 31st for your donation to qualify this year.  If you have check-writing features on your IRA, please be aware that your check must clear your account by Dec. 31 to count toward your RMD for the calendar year.  PLEASE NOTE:  It is critical to let us know of your gift because many popular retirement plan administrators assume no obligation to notify a charity of your designation. We would also like to thank you for your generosity. 

The information contained herein was accurate at the time of posting. The information on this website is not intended as legal or tax advice. For such advice, please consult an attorney or tax advisor. References to tax rates include federal taxes only and are subject to change. State law may further impact your individual results.