A Qualified Charitable Distribution (QCD) From your IRA
Do you want to find a way to both give to ministry and also prevent your IRA’s Required Minimum Distributions (RMD) from pushing you into a higher tax bracket? A Qualified Charitable Distribution is a direct gift from your traditional IRA that doesn’t add a penny to your taxable income. And for many people this is better than a tax deduction for donating the money after withdrawing it from an IRA.
To be eligible, you must be 70½ or older. The maximum cumulative QCD transfer amount to one or more charities is $100,000 annually, per taxpayer. Beginning at either age 70 ½ or 72 (depending on your birth year), the amount you donate from your IRA as a QCD may count toward your RMD. Check with your professional advisor to learn how much of your QCD will qualify for your RMD.
Prior to making a donation from an IRA, consult with your tax or legal advisor.
- Instruct your broker/investment firm to make a Qualified Charitable Distribution for a specific amount from your IRA to Paraclete. Your broker/investment firm may provide an online form to use for this purpose. Request that the donation be marked with your “preference” for the project or Paraclete associate ministry of your choice. The donation address is:
Paraclete Mission Group
PO Box 912576
Denver, CO 80291-2576
- Initiate your QCD donation transfers with your broker/investment firm by Dec. 1 to allow for transaction processing time at the end of the calendar year.
- Connect with us when your QCD donation is on its way, and indicate the “preference” or intended designation (the ministry of a specific Paraclete associate, a project, or the Paraclete Mission Fund).
- Since a QCD is not deductible for income tax purposes, you will receive an acknowledgement of the donation from Paraclete rather than a receipt.
Links to information about QCD donations via some popular brokerage firms:
(For informational purposes only. Paraclete does not endorse any brokerage firm.)
Ally Contact Information
Charles Schwab QCD Instructions
Edward Jones Giving Tips (includes QCDs)
E-Trade Contact Information
Fidelity QCD Information
Fisher Contact Information
Morgan Stanley Report Download on QCDs
Merrill Lynch / BOA Contact Information
Pershing Contact Information
TD Ameritrade Report Download on RMDs and QCDs
Vanguard Instructions on How to Take a QCD
Wells Fargo Report Download on What You Need to Know About QCDs