Qualified Charitable Distributions

A gift directly from your IRA or 401(k) can have a big impact for KVPR and tax advantages for you as well.

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A gift directly from your retirement account can be a "win-win" solution for many donors. You'll have the opportunity to make a big impact in supporting KVPR while also enjoying potential advantages for yourself come tax time.

What is a Qualified Charitable Distribution?
Individuals age 70 1/2 or older are eligible to make a Qualified Charitable Distribution (QCD) directly from their IRA or 401(k) retirement accounts. These are gifts that go directly from a donor's retirement account to a qualified non-profit. In addition to benefiting the donor's charity of choice, QCDs typically do not count towards your taxable income, and can count towards your Required Minimum Distribution, (RMD). A lower taxable income can also have other advantages involving Medicare monthly premiums.

What is a Required Minimum Distribution (RMD)?
For 2023, individuals age 73 or older must take a Required Minimum Distribution (RMD) from their IRA or 401(k) accounts. Your RMD amount will be based on the market value of your account as of December 31st of the previous year divided by a life expectancy factor published by the IRS. Like other conventional IRA or 401(k) distributions, RMDs typically count toward your taxable income. However, a Qualified Charitable Distribution can help satisfy your RMD requirement, and help avoid increasing your taxable income.

How do QCD's work?
In 2023, individuals can typically make QCDs in total of up to $100,000 per year without tax penalty, or $200,000 for a couple filing jointly. To qualify, QCDs must be made directly from your retirement account to a qualified non-profit like KVPR. The deadline for Qualified Charitable Distributions to meet your RMD requirement is typically December 31st for the tax year in question.

As with any financial or tax matter, always consult your financial or tax advisor, as your situation may vary. If you'd like more information on how to make a Qualified Charitable Distribution to KVPR, contact KVPR's Development Director Joe Garcia, at 559-862-2472 or jgarcia@kvpr.org.