IRA Qualified Distributions

See information below about the new SECURE Act and how it impacts your IRA.

The Qualified Charitable Distribution (QCD) is an excellent way to support the KEYS Program and receive tax benefits in return.

Use your IRA Required Minimum Distribution (RMD) to make the most of your charitable giving. You receive a tax benefit even if you take only the standard deduction.

Best of all, you help create smiles all year!

Giving Under the SECURE Act

The Setting Every Community Up for Retirement Enhancement Act (SECURE Act), passed at the end of 2019, is a far-reaching bill including significant provisions aimed at increasing access to tax-advantaged accounts and preventing older Americans from outliving their assets.

Share this information with your tax or investment advisor to determine if a Qualified Charitable Distribution is right for you.

Benefits of IRA Giving 

  • IRA Qualified Charitable Distributions are excluded as gross income for federal income tax purposes on your IRS Form 1040.

  • The gift counts toward your required minimum distribution for the year in which you made the gift.

  • You could avoid a higher tax bracket that might otherwise result from adding an RMD to your inco

Two Changes Impacting Giving

  • The SECURE Act increased the RMD (Required Minimum Distribution) age from 70 1/2  to 72. However, you can still make a Qualified Charitable Distribution at 70 1/2.

  • Heirs now have only ten (10) years to take Required Minimum Distributions. This means the government will get their taxes much sooner. Now is a good time for a thorough tax review by an expert.

Zero Tax When You Donate

Retirement plans are taxed at ordinary income rates when left to heirs. But, there's zero tax when you donate such assets to The KEYS Program. 

  • You must be 70 1/2 or older at the time of the gift.

  • Distributions must be made directly from a traditional IRA account by your IRA administrator to KEYS Corp dba The KEYS Program.

  • Gifts must be outright, meaning they go directly to KEYS Corp.

  • Distributions to donor-advised funds or life-income arrangements such as charitable remainder trusts and charitable gift annuities do not qualify. 

  • Gifts from 401k, 403b, SEP and other plans do not qualify.

 

Consult with your tax or investment advisor to make the best decision in making a charitable contribution from your IRA.

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