Qualified Charitable Distribution (IRA Charitable Rollover)

Use Your Traditional IRA to Make a “Tax-Free” Gift to the Moms for Liberty Foundation.

Tools You Will Need

How do you complete an IRA Charitable Rollover? The process is simple!

A Qualified Charitable Distribution (QCD) is a fantastic way to support the Moms for Liberty Foundation while enjoying tax benefits. When planning your required minimum distributions (RMD), consider using your IRA to maximize your charitable impact. This approach provides a tax benefit even if you claim the standard deduction!

Before deciding to make a charitable contribution from your IRA, it’s essential to consider your tax situation. Be sure to discuss this giving strategy with your financial advisor.

To Qualify

Tax Benefits

Example

Michael, age 73, wants to donate $20,000 to the Moms for Liberty Foundation With a bit over $500,000 in his IRA, his required minimum distribution (RMD) is about $20,000. He can direct his IRA administrator to transfer $20,000 directly to the Institute in a “qualified charitable distribution” (QCD). While Michael won’t receive a charitable income tax deduction, the full QCD amount is excluded from his taxable income, resulting in tax savings. Additionally, the $20,000 given to the Institute will count toward his RMD for the year, allowing him to avoid income tax on the amount contributed to charity.

Note: At age 73, Michael is required to start taking his RMD. The earliest he can make voluntary withdrawals from his retirement account is 59.5, while the minimum age for making a QCD is 70.5. This can be a bit confusing: if Michael is between 70.5 and 73, he can make a QCD, but if he’s not taking an RMD, he won’t benefit from the tax advantage.

Question & Answers

The QCD allows individuals aged 70 ½ and older to directly distribute up to $105,000 annually to 501(c)(3) charities without including it as income for federal tax purposes. Although no charitable deduction applies, for those aged 73 or older, these distributions can count toward all or part of the required minimum distributions (RMDs) from their IRA.

Individuals aged 70 ½ or older at the time of contribution (meaning you must wait until six months after turning 70 to make the transfer).

Up to $105,000 per year, with the distribution made directly to the charity.

Distributions must be sent directly from your IRA to the Moms For Liberty Foundation. If you’d like to make a gift from another retirement account, such as a 401(k) or 403(b), you’ll need to first roll those funds into an IRA. From there, you can instruct the IRA administrator to send the distribution directly to the Institute for Justice.

Possibly yes, but with a significantly lower dollar limit. Please contact us for more details.

You will receive full credit for the entire gift amount, along with a letter confirming that the gift qualifies as a QCD for your tax reporting purposes.

Federal: When the distribution to the Moms for Liberty Foundation is made directly from your IRA administrator to us, it is not recognized as income, meaning you won’t qualify for an income tax charitable deduction.

State: Each state has its own tax laws, so it’s important to consult your advisors. In some states with income tax, this distribution may be counted as income. Among those, some allow a state income tax charitable deduction, while others do not. Other states calculate state income tax based on federal income or federal tax paid, and some states do not have an income tax at all.

Yes, any individual who owns a traditional IRA can utilize the Qualified Charitable Distribution for up to $105,000 annually.

Share this information with your financial advisor. Our office is available to provide further details and examples of this giving plan. Give us a call—we’d be happy to assist.

We provide a sample letter you can send to your plan provider to start the distribution process. Please remind your plan administrator that the gift must be sent before December 31 to qualify as a charitable distribution for the tax year. When you initiate the distribution, call us at (703) 682-9320 so we can watch for the check from your IRA administrator.

Important Notes

The QCD permits individuals aged 70 ½ and older to distribute up to $105,000 annually directly to 501(c)(3) charities without counting it as income for federal tax purposes. While it doesn’t qualify for a charitable deduction, for those 73 or older, these distributions can satisfy all or part of their required minimum distributions (RMDs) from an IRA.

Moms for Liberty Foundation is a 501(c)(3) charitable organization, and charitable contributions are tax-deductible. Our federal tax identification number is 87-3980061.
Please make checks payable to:
Moms for Liberty Foundation
981 E Eau Gallie Blvd. Ste. E #13123 Melbourne FL, 32937