Overview
Qualified Charitable Distribution (QCD) allows you to give directly from your Individual Retirement Account to a qualified charity which might satisfy any minimum distribution requirements you may have. There are age and maximum distribution rules for this type of gift, so you’ll want to discuss this strategy with your financial advisor.
Requirements
- The funds must be issued directly to a qualified charity from a Traditional or Roth IRA. Generally a qualified charity includes: most public charities, including religious institutions, certain veterans’ organizations, fraternal societies, and community foundations that provide scholarships.
- The donor cannot receive any benefit from making a QCD and the QCD cannot be deposited by the charity into a donor advised fund.
Best Practices/Steps
- Consult your tax professional to ensure it is in your best interest to complete a QCD and your distribution qualifies.
- Notify Blessed Sacrament that they will be receiving a check from you and obtain the following important details:
- How the check should be made payable
- Mailing address
- Contact your Financial Advisor or Account Administrator to request the funds to be issued from your Traditional or Roth IRA as a QCD. You will need to discuss liquidating securities if the account does not have cash and/or money market funds available.
- Follow up with Blessed Sacrament 7-10 business days after the check is issued. Verify that we received the funds. Blessed Sacrament will mail a receipt to you.