Charitable IRA Rollovers, also known as Qualified Charitable Distributions (QCDs), are tax-savvy ways for many people aged 70 ½ or older to make charitable gifts. 正规赌钱软件app have compiled a list of frequently asked questions here. Please contact the Office of Gift Planning at 765-361-6135 or email giftplanning@wabash.edu if you need further assistance.
WHAT IS A CHARITABLE IRA ROLLOVER?
A Charitable IRA Rollover, also known as a QCD, is a gift from an Individual Retirement Account (IRA) to a qualifying charitable organization, such as Wabash College, sent directly from the IRA to the charity.
IS A QCD THE SAME THING AS A CHARITABLE IRA ROLLOVER?
Yes. A QCD is the language used in the tax code and it is also often, commonly referred to as a Charitable IRA Rollover.
WHAT IS THE MINIMUM AGE FOR MAKING A CHARITABLE IRA ROLLOVER GIFT?
You must turn 70 ½ prior to requesting the distribution.
WHEN AM I REQUIRED TO START REQUIRED MINIMUM DISTRUBUTIONS (RMDs)?
You must take your first RDM for the year in which you reach age 73. However, you can delay taking the first RMD until April 1 of the following year.
HOW DO I CREATE A CHARITABLE GIFT ANNUITY USING A CHARITABLE IRA ROLLOVER?
In 2025, tax law permits an IRA to Gift Annuity Rollover where each eligible tax payer over the age of 70 ½ can execute a QCD from their traditional IRA up to $54,000 in total in one year only. Multiple charities may be allowed to contract Charitable Gift Annuities (CGAs) so long as the $54,000 cumulative total of all CGA contracts is not exceeded that year. Also, once a CGA is created in a given year, no additional years are permitted for creating a CGA with a QCD, even if the original $54,000 threshold wasn’t reached in the first year the contract was issued.
WHAT IS THE TAX TREATMENT FOR CHARITABLE IRA ROLLOVERS?
There is no income tax deduction for a Charitable IRA Rollover because the funds are never included in the donor’s income in the beginning. Accordingly, ordinary income tax, which would otherwise be due on withdrawals from an IRA, is not assessed on the gift. For people who do not itemize their taxes, this may be more beneficial than a tax deduction.
You may find it advantageous to make a Charitable IRA Rollover gift in the absence of being required to take your RMDs so that when it’s time to take RMDs, you may possibly lower your tax liability. If an account owner fails to withdraw a RMD, fails to withdraw the full amount of the RMD, or fails to withdraw the RMD by the applicable deadline (including QCDs to charity), the amount not withdrawn is taxed at 50%. Please consult your tax advisor regarding the best charitable and financial strategy for your situation.
WHAT TYPE OF ACKNOWLEDGEMENT SHOULD I EXPECT?
Wabash will send you a written acknowledgment of your gift to thank you and to confirm the amount of your gift and its intended purpose. Because there is no income tax deduction, you will not receive a conventional receipt.
I HAVE A ROTH IRA. CAN I USE IT FOR A CHARITABLE IRA ROLLOVER?
Roth IRAs are eligible for rollover treatment, however, because distributions from Roth IRAs are not taxed as ordinary income, you may wish to discuss with your financial advisor whether this is the best way for you to give.
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