IRA CHARITABLE ROLLOVER

For Stock Transfer Information see our transfer info here

Who can take advantage of these Qualified Charitable Distributions (QCDs) from IRAs?

  • Anyone age 70½ and older who owns an IRA

Gift parameters

  • If you are an IRA owner age 70 ½ or older can give up to $100,000 in the current calendar year.
  • Your distribution must be delivered to Harford Chabad (Chabad of Harford County) by the IRA Administrator on or before December 31 (if sent by mail, the postmark will determine the delivery date; if sent electronically, delivery will be determined by the date the funds reach Chabad’s account.)
  • Your gift must be made to a qualified public charity, such as Chabad of Harford County. EIN 27-2793030
  • Distributions must be made directly from your IRA to Chabad. Do not withdraw the funds yourself and pass them on to Chabad or your gift will not be a QCD and will be included in your taxable income.
  • You can only make outright gifts. QCDs cannot fund life income gifts (such as charitable gift annuities or charitable reminder trusts).

Note that employer-sponsored retirement plans, such as SEP IRAs, SIMPLE IRAs, 401(k)s, and 403(b)s are generally not eligible .

What are the advantages of making an IRA charitable rollover gift?

  • You can count your QCD towards your annual required minimum distribution.
  • Your distribution is not recognized as income on your federal income tax return (therefore, you cannot take a charitable deduction).
  • Under federal tax laws, keeping your IRA distribution out of your adjusted gross income may save you taxes.
  • The transfer is quick and direct from your IRA to Chabad with minimal paperwork.

Using a Roth IRA eliminates many of the tax advantages of the charitable distribution – if you don’t have a traditional IRA, it may be better to withdraw funds directly from your Roth account, make a gift and take a charitable deduction. Consult your financial or tax advisor for advice.

Please consult your financial advisor before initiating a transfer. Some states may determine that QCDs will be includable in income for state and local tax purposes.

Harford Chabad does not provide legal or tax advice. We advise you to consult your own professional advisors in connection with gift and planning matters.