Qualified Charitable Donations: Maximize your impact, minimize your taxes!
A Qualified Charitable Distribution (QCD) is a direct transfer of funds from an Individual Retirement Account (IRA) to a qualified charity. QCDs can also count toward satisfying Required Minimum Distributions (RMDs).
QCDs allow individuals over 70 ½ to donate directly from their IRA to qualified charities, reducing taxable income and potentially lowering your tax bracket. This win-win strategy lets you support United Way of Martin County while also saving on taxes.
Talk to your financial advisor to see if QCDs are right for you and make a lasting difference with your charitable giving.
Benefits of a QCD:
- Avoid taxes on transfers of up to $105,000 from your IRA to support United Way.
- Satisfy some or all of your Required Minimum Distribution (RMD) for the year.
- Reduce your taxable income, even if you do not itemize deductions.
- Make a gift that is not subject to the deduction limits on charitable gifts.
- Use your rollover to make payments on an existing pledge to us.
How to Make a Qualified Charitable Distribution:
- Call your IRA custodian to let them know you would like to make a Qualified Charitable Distribution to United Way of Martin County (Tax ID #23-727354).
- Let your custodian know the amount of the distribution you want to make and the date you want the distribution to be made.
- The custodian will process the distribution and send the money directly to United Way of Martin County.
Please request that when your custodian sends the Qualified Charitable Distribution that they clearly indicate the it is from you, so we can properly acknowledge your generosity.
Questions? Please contact Elisabeth Glynn at 772-283-4800 ext. 2212 or eglynn@unitedwaymartin.org.
* January 2024 update to reflect current year tax and limit adjustments: In 2024, individuals who are 70 ½ years old or older may use a QCD to donate up to $105,000 to qualified charities from an IRA. This changes from the initial $100,000 IRA QCD limit set for tax year 2023 reflects Section 307, which indicates the limit will be annually indexed for inflation.
* January 2023 update on IRA RMD age: The age for Required Minimum Distribution (RMD) from an IRA was increased to 73 effective on January 1, 2023. IRA owners who turned 72 in 2023 were not required to take RMDs in 2023.