Donating From Your IRA
If an individual has an IRA, at a certain age they must begin drawing a Required Minimum Distribution. Unfortunately, this distribution is taxed as ordinary income and increases tax liability.
However, turning that Required Minimum Distribution into a Qualified Charitable Distribution—by giving it directly to a qualified non-profit such as St. Vincent de Paul—means one does not have to pay taxes on that charitable amount. So you can feed, clothe and shelter those in great need while reducing your tax burden.
By instructing your IRA account manager to contribute your Required Minimum Distribution directly from your retirement plan to St. Vincent de Paul, the income that would normally be taxable to you now becomes tax exempt, and reduces your adjusted gross income for tax purposes.
IRA holders aged 70½ or older who make a contribution directly from a traditional IRA to a qualified charity can donate up to $100,000 without it being considered a taxable distribution.
CARES Act Updates on Charitable Giving with an IRA:
The CARES Act (March 2020) includes a temporary waiver for the 2020 Required Minimum Distributions.
Qualified Charitable Distributions may still be taken from IRAs as early as age 70½, despite the 2020 waiver for Required Minimum Distributions.
SECURE Act updates on Charitable Giving with an IRA:
The SECURE Act (Dec 2019) increased the Required Minimum Distribution age to 72 years, up from 70½. However, this development applies only to folks who reach 70½ after 2019. So if you turned 70½ in 2019 or earlier, you are unaffected by the new law.
Qualified Charitable Distributions may still be taken from IRAs as early as age 70½ despite the SECURE Act delay in the starting age for Required Minimum Distributions.
If you would like to learn more about giving to St. Vincent de Paul with your IRA, please call Michael Vanderburgh, Executive Director, directly at 937.802.3890.
Or you can complete the form below and we will contact you right away to answer any questions you may have.
Donate Your IRA
St. Vincent de Paul Dayton
124 West Apple St.