IRA Charitable Rollover
Normally, a distribution from a traditional IRA incurs taxes since the account holder didn’t pay taxes on the money when they put it into the IRA. But account holders aged 70½ or older who make a contribution directly from a traditional IRA to a qualified charity can donate up to $100,000 without it being considered a taxable distribution. The deduction effectively lowers the donor’s adjusted gross income (AGI).
To avoid paying taxes on the donation, the donor must follow the IRS rules for qualified charitable distributions (QCDs)—aka, IRA charitable rollovers. Refer to your financial institution’s Qualified Charitable Distribution Form (QCD) or contact Debbi Alsfelder for more information.
Sample IRA QCD Request from Owner to Administrator
Sample Letter from Donor to Church of the Redeemer Informing of IRA QCD Transfer