QCD Transfers

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Qualified Charitable Distribution (QCD) allows IRA holders, age 70 ½ or older, to donate to a qualified charity from their Traditional or Roth IRA (including inherited) tax-free.

Requirements

  • The donating IRA holder must have attained age 70 ½ on or before the date the QCD check is issued. If an inherited IRA, the beneficial owner must have attained age 70 ½ or older.

  • The funds must be issued directly to Word Radio from a Traditional or Roth IRA. 

  • The donor cannot receive any benefit from making a QCD.

  • The maximum amount of QCDs that can be excluded from an individual's taxable income is $100,000 annually, per donor. However, deductible contributions made during or after the year an individual turns age 70 ½ will reduce the amount that may be excluded. Consult your tax professional to determine the tax-free amount you can withdraw.

  • Checks must be issued by December 31 in order to apply to the current calendar year. If a Money Market check is written, it will apply to the year in which it is cashed by Word Radio.


Best Practices/Steps


1. Consult your tax professional to ensure it is in your best interest to complete a QCD and your distribution qualifies.


2. If you made any deductible contributions during or after the year you reach age 70 ½, you should keep records of the contribution and QCD activity and consult your tax professional to determine the portion of the QCD that may be excluded from your taxable income.


3. Notify Word Radio that they will be receiving a check from you and obtain the following important details:

  • How the check should be made payable (Word Radio Educational Foundation)

  • Mailing Address (PO Box 398, New Durham, NH 03855)
     

4. Contact your Financial Advisor to request the funds 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.


5. Follow up with the receiving charity 7-10 business days after the check is issued. Verify they received the funds and have mailed a receipt to you.


6. After obtaining the receipt from the charity, mail a copy to your tax professional and keep the original with your permanent tax records.

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