A Special Giving Opportunity With Your IRA
A popular, tax-smart option for giving is a qualified charitable distribution (QCD) from your Individual Retirement Account (IRA). The law permitting special treatment of qualified charitable distributions (QCDs) from Individual Retirement Accounts (IRAs) expired on December 31, 2013. We are hoping the law will be extended by Congress and the President, but for now those provisions are not effective.
Here are some important notes and highlights of the law as it was in 2012 and 2013:
- The distribution must be made from a traditional or Roth IRA. Other retirement accounts, such as those under 401(k), 403(b), or 401(a) plans, are not eligible.
- You must be at least 70-1/2 years of age when the distribution is made.
- You can give up to $100,000 per year without including the distribution in your gross income. Married couples may be able to give up to $200,000. Amounts given count toward your annual required minimum distribution.
- Distributions cannot be made to private foundations or donor advised funds under this provision. Recipients must be qualified public charities like MPR.
- The distribution must be made directly from the IRA administrator to MPR or other qualified public charity (rather than to you).
- Gifts under this provision must be made outright, and cannot be used for any quid pro quo benefits or to establish a charitable gift annuity or charitable remainder trust.
Because circumstances may vary from person to person, donors should discuss plans with a professional tax advisor, who could let you know if the law has been extended.
If this giving vehicle becomes a possibility for you, below are two sample letters for communicating your wishes to MPR and to your IRA administrator. These letters will enable us to provide the proper receipt for your gift.
Letter to IRA Administrator to Request Qualified Charitable Distribution from IRA to Minnesota Public Radio
Download the IRA Administrator document
Letter Notifying Minnesota Public Radio of Charitable Distribution from IRA
Download the Charitable Distribution from IRA document
Contact Planned Giving Officers Joe Thiegs (651.290.1583 or firstname.lastname@example.org
) or Paul Odegaard (651.290.1129 or email@example.com
) for assistance or additional information.