IRA QCDs. A Tax-Smart Way to Give.

Due to the increased standard deduction, many taxpayers no longer itemize their deductions and therefore may not receive a tax benefit from charitable gifts. A Qualified Charitable Distribution (QCD)—also known as an IRA Charitable Rollover—provides a way to make a charitable gift and still enjoy meaningful tax savings, even if you do not itemize.

A QCD allows you to make a tax-free gift directly from your traditional IRA to Washington National Cathedral. If you are required to take a Required Minimum Distribution (RMD), a QCD can help reduce the taxable amount you must withdraw.

When you make a QCD, the transferred funds are not included in your taxable income for the year. If you were to withdraw the funds yourself and then donate them, the withdrawal would be included in your income and could increase your taxes.

A QCD also counts toward your RMD for the year. If you do not need those funds for living expenses, you can direct them to Washington National Cathedral, and other qualified charities, and avoid paying income tax on the distribution.

Key Rules
  •  You must be age 70½ or older on the date of distribution
  •  If you are age 73 or older, a QCD can satisfy your RMD without increasing taxable income
  •  You may give up to $111,000 per individual per year (a married couple with separate IRAs may each give this amount)
  •  Gifts must come from a traditional IRA (401(k), 403(b), SEP IRA, and similar plans do not qualify)
  •  Gifts must go directly to a public charity (not a donor-advised fund, private foundation, or supporting organization)
  •  You may not receive any goods or services in return
  •  The IRA custodian must send the payment directly to Washington National Cathedral
Benefits to You
  •  Your QCD is excluded from taxable income
  •  Your QCD satisfies some or all of your RMD
  •  Lower taxable income may reduce taxes on Social Security benefits
  •  Lower income may help limit Medicare premium surcharges
  •  You provide immediate support to the Cathedral
Next Steps

Contact your IRA administrator to request a Qualified Charitable Distribution from your IRA directly to Washington National Cathedral.