by As a former financial planner, I am quite aware of the Qualified Charitable Distribution. If you are 70 1/2 or older, it is an excellent way to make tax free contributions to 501(c)(3) non-profits which can range from your local church to many gun rights organizations.
While the alert below is specific to Rights Watch International of which I am the treasurer, a QCD could also be used to donate monies to groups like the NRA Civil Rights Defense Fund, the NRA Freedom Action Foundation, the Second Amendment Foundation, and many others.
The three key items to bear in mind are that you must be age 70 1/2 at the time of the donation, it must come from an IRA, and the donation must go directly from the IRA custodian to the charitable organization.
See the alert below for more information:
Rights Watch International is the 501(c)(3) educational and legal arm of Grass Roots North Carolina. Donations to RWI are deductible for income tax purposes.
The IRS gives you a way to make a tax-free contribution to help Rights Watch International with monies from your IRA. It is called a Qualified Charitable Distribution. Not only are you helping preserve and protect your Second Amendment rights but you are getting important tax benefits.
Of course, there are some restrictions.
- You have to be age 70 ½ on the day of the distribution.
- The monies have to come from an IRA – traditional, rollover, inherited, inactive SEP, and inactive SIMPLE IRAs qualify.
- Rights Watch International has to give you an acknowledgement of the contribution.
- You have to report it on your Form 1040.
- The annual limit is $111,000 per individual.
- The distribution must come directly from your IRA custodian to Rights Watch International which is a qualifying 501(c)(3) non-profit.
Tax Benefits
- No Income Added: The distributed amount is not added to your adjusted gross income (AGI).
- Satisfies RMDs: It can fulfill all or part of your annual RMD once you reach RMD age.
- Lowers Thresholds: Keeping your AGI lower can help reduce taxable Social Security benefits and prevent higher Medicare Part B/D premiums.
- Standard Deduction Friendly: You benefit even if you take the standard deduction rather than itemizing.