Qualified Charitable Distributions
What is a qualified charitable distribution?
A qualified charitable distribution (QCD) is a nontaxable distribution of funds from your IRA (other than an ongoing SEP or Simple IRA) directly to a tax-deductible charitable organization, like Arch Street Meeting House Preservation Trust.
Because the gift goes directly to the charitable organization, the gift amount may be excluded from your taxable income up to an annual maximum of $108,000 for an individual or $216,00 for married couples filing jointly, with some exceptions.
Please consult your tax advisor for information regarding your specific exceptions. Learn More at IRS.gov
Why make a Qualified Charitable Distribution?
Tax Advantage
A QCD is a tax-efficient way for individuals aged 70 ½ or older to make gifts directly from their Individual Retirement Account (IRA), excluding that amount from taxable income and providing a potential tax benefit. QCDs have no AGI limits because it is not included in your taxable income, thus preserving other tax deductions and credits that you wish to claim.
RMD Fulfillment
If you are 73 or older and required to take Required Minimum Distributions (RMDs) from your IRA, a QCD can help satisfy part or all of this obligation while reducing your taxable income and directly supporting our mission.
Reduce Taxable Income
By utilizing a Qualified Charitable Distribution (QCD), you effectively decrease your taxable income since the amount given to charity through this method is not included in your income calculation for tax purposes.
This reduction can lower your tax bracket, potentially decrease the taxable portion of your Social Security benefits, and might even reduce your Medicare Part B and D premiums. Additionally, by not adding this income to your AGI, you maintain eligibility for other tax deductions and credits that could otherwise be phased out at higher income levels, offering a strategic advantage in your overall tax planning.
Interested in making a Qualified Charitable Distribution?
Please return this form to your IRA Trustee and instruct them to send the form and your IRA Qualified Charitable Distribution to: Arch Street Meeting House Preservation Trust, 320 Arch Street, Philadelphia, PA 19106.