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Christian Food Pantry

North Lake Presbyterian Church

Operation Homebound

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Charitable Donations

Directly From an IRA

Can Have Several

Benefits

(provided you have

reached age 70 1 /2)

New tax laws allow

persons over age 70 1/2 to

make TAX FREE

charitable contributions

directly from their IRA.

There is no need to

itemize deductions to get

this tax free distribution.

Distributions count toward

your annual required

minimum distribution.

Information provided here was

current at the time it was

prepared.

You should ensure the tax

rules are still current and

applicable to your particular

situation. If you believe you

might have a special situation,

you should seek professional

advice.

Individual Retirement

Accounts (IRA) custodians

should be able to provide you

with any updates as well as

assist you with making a

qualifying distribution.

The Consolidated

Appropriations Act of 2016

made permanent Qualified

Charitable Distributions

(QCDs) from (IRAs). A QCD

permits tax free annual direct

transfers to a qualified charity

up to $100,000 per year of

tax-deferred IRA savings.

Current as of: January 2018

Here are some potential

benefits:

• A Qualified Charitable

Distribution (QCD) from

an IRA is not counted in

Adjusted Gross Income

(AGI) and therefore not

taxed as normal IRA

distributions.

• A QCD can be used

even when using a

standard deduction.

• A QCD counts toward

your Required Minimum

Distribution (RMD) for

the year it is done. It

cannot be carried over

to satisfy RM Ds for

future years.

• Enables taking

advantage of the

standard deduction

AND getting credit for

charitable deductions.

By not increasing your AGI,

it additionally avoids

potential:

• Increase in tax bracket

• Triggering phase-out of

itemized deductions or personal

exemptions for taxpayers with

higher AGI

•

•

•

Increase of taxes on Social

Security

Increase of Medicare premiums

Increase of floor for medical

expense if you itemized

deductions

To be a QCD there are

several rules that must be

followed:

• You must actually be 70 1/2

before making the QCD.

• The charitable donee must be a

501 (c)(3) organization.

• Pensions and inherited IRAs are

not included.

Rules continued:

• RMDs must be done by

December 31 .

• Funds must go directly to the

charity without intermediate

ownership by you. The IRA

custodian can send you the

check made out to the charity

and you can deliver the check

to them. The check cannot be

made out to you.

• Ensure you obtain

acknowledgement for your

donation from the charity.

• Complete an IRS Form 8606 if

you take additional distributions

during the tax year from the IRA

or if it was a Roth IRA.

• Specific entries on the IRS form

1040 are required .

• Do not include the QCD as an

itemized deduction as it is not

included in taxable income.

For additional information:

• Do a web search "QCD

from IRA".

• Search the web site of

your IRA custodian.

• Call your IRA custodian

(e.g. Vanguard, Fidelity,

T. Rowe Price, ETC.)

• Consult with your tax

advisor, if you use one.

North Lake Presbyterian Church

975 Rolling Acres Road

Lady Lake, FL 32159

(352) 753-8484 phone (352) 753-3982 fax

www.northlakepc.org