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IRA Charitable Rollover Gifts

The IRA Charitable Rollovers or Qualified Charitable Distribution (QCD) are an excellent way to show your support for Reach for Resources and receive tax benefits in return. When planning your required minimum distributions (RMD), consider using your IRA account to make the most of your charitable giving. You receive a tax benefit even if you take the standard deduction!

It’s important to consider your tax situation before deciding whether to make a charitable contribution from your IRA. Be sure to share this gift plan with your financial advisor.

Please mail checks to:
Reach for Resources
5900 Green Oak Drive,
Suite 303,
Minnetonka, MN 55343

*Please include your name and address with the check to receive correct credit and acknowledgement of your gift. Please make checks payable to Reach for Resources.

To Qualify

  • You must be 70½ or older at the time of the gift.
  • Distributions from a traditional IRA account must be made directly by your IRA administrator to Reach for Resources.
  • Gifts must be unconditional, going directly to Reach for Resources. Distributions to donor-advised funds are ineligible.
  • Gifts from 401(k), 403(b), ongoing SEP or SIMPLE IRAs, and other plans are not eligible. Consult your financial advisor to determine if establishing a traditional IRA account would be advantageous for you to benefit from an IRA Qualified Charitable Distribution.
  • Click here for an example letter you can send to your IRA provider.

Tax Benefits

  • IRA Qualified Charitable Distributions are not considered gross income for federal income tax purposes on your IRS Form 1040.
  • The donation contributes towards fulfilling your required minimum distribution for the year in which it was made.
  • This approach could help you steer clear of entering a higher tax bracket that might arise from adding an RMD to your income.

Important Information

If your administrator give you an IRA checkbook, it’s important to remember that the date of your QCD is not the date you mail the distribution check, but rather the date when your IRA administrator transfers the funds to the charity. If you wish for your distribution check to count towards the current tax year, it’s crucial to mail your check several weeks before the year’s end to allow time for receipt by common reporting standards (CRS) and clearance from your account. This is particularly vital if you depend on these gifts to satisfy your required minimum distribution.


What's the IRS rules?

IRA Charitable Rollver enables individuals aged 70½ and older to make direct distributions of up to $100,000 per year to 501(c)(3) charities without needing to include these distributions as income for federal income tax purposes. Although no charitable deduction can be claimed, these distributions can fulfill some or all of the IRA owner’s required minimum distributions.

Who qualifies?

Those eligible to contribute are individuals aged 70½ or older at the time of the contribution (you must wait until six months after your 70th birthday to initiate the transfer).

How much can I distribute?

You can contribute up to $100,000 per year, with the donation needing to be made directly to a charity.

What accounts can I make transfers from?

Distributions must come directly from your IRAs to Reach for Resources. Should you desire to support us with a gift from another retirement asset like a 401k, 403b, etc., you must initially transfer those funds into an IRA. You can instruct the IRA administrator to distribute the funds directly to Reach for Resources.

Can I use QCD to fund Donor Advised Funds?

Currently, you can not.

How will Reach for Resources count the gift?

You will be acknowledged with full credit for the entire gift amount. Additionally, you will receive a letter confirming that the gift qualifies as an IRA Charitable Rollover, for tax reporting purposes.

What are my tax benefits?

Federal: You do not consider the distribution to Reach for Resources as income if it is sent directly from the IRA administrator to us. Consequently, you are not eligible for an income tax charitable deduction for your contribution.

State: The regulations vary by state, hence it’s advisable to seek guidance from your personal advisors. Certain states impose a state income tax, including this distribution as income. Among these states, some permit a state income tax charitable deduction, while others do not. Alternatively, some states determine their income tax based on federal income or federal tax paid. Additionally, some states do not levy an income tax at all.

Can my partner also make an IRA Charitable Contribution?

Yes, any individual who owns a traditional IRA can utilize the Qualified Charitable Distribution for amounts up to $100,000 annually.