IRA Qualified Charitable Distribution – A Great Way to Give
Contributing from your IRA to a fund at the Community Foundation for Monterey County (IRA Qualified Charitable Distribution (QCD) is an easy way to reduce your tax burden and make a significant gift to support causes you care about.
In retirement the IRS requires you to withdraw a certain amount (a required minimum distribution) from your IRA each year whether you need the funds or not, and you pay income tax on every distribution you take. You can utilize part of your RMD to direct a gift to benefit the causes of your choice.
How it Works
If you are 70 1/2 or older*, you can make a gift from your IRA account to the CFMC to benefit your favorite nonprofit. Gifts made from your IRA (up to $100,000 per year) are not reportable as taxable income and qualify toward your required minimum distribution which can lower your income and taxes. If you are married, your spouse can also make a gift of up to $100,000 from his or her IRA, for a total of $200,000. NOTE: Though the CARES Act has waived required minimum distributions for 2020, an IRA QCD is still a great way to make a meaningful gift.
Leverage Your Gift Through Monterey County Gives!
You can also direct your gift to support participating nonprofits in the Monterey County Gives! year-end campaign from mid-November through December 31 and receive a partial match.
With an IRA Charitable Rollover you reduce your taxes, support or establish a fund to benefit one or more organizations you care about, and feel good knowing that you were able to make a major gift from your IRA.
Note: *Tax-free IRA contributions can be made to Field of Interest, Unrestricted, Designated, special funds (including Monterey County Gives!) or operating funds at the CFMC. Gifts to Donor Advised Funds, private foundations, or to fund a Charitable Gift Annuity or Charitable Remainder Trust do not qualify for preferential tax treatment. You cannot receive any goods or services in order for an IRA rollover gift to qualify for tax-free treatment.
*The Setting Every Community Up for Retirement Enhancement Act of 2019 (SECURE Act) became law on December 20, 2019. The Secure Act made major changes to the RMD rules. If you reach age 70 ½ in 2020 or later you must take your first RMD by April 1 of the year after you reach 72.