Qualified Charitable Distributions (QCDs), also called “IRA charitable distributions” or “IRA charitable rollovers,” are an increasingly popular and flexible tool for driving impact. They allow those 70½ years old or older to donate up to $100,000 directly from their traditional IRA to qualified nonprofits instead of taking the income. These gifts can satisfy the required minimum distribution (RMD) amounts if a person has passed their RMD required start date. Beginning in 2023, individuals may contribute $50,000 from their IRA into an income-producing gift, such as a Charitable Gift Annuity or Charitable Remainder Trust.
Although recent legislation increased the RMD age to 73 for 2023, those who had RMD requirements in 2022 will continue to have them this year. Once a person passes the RMD required start date, they must take the income, even if they don’t want or need the funds.
Qualified Charitable Distributions are a great way to unburden overfunded IRAs. I recommend them to clients aged 70½ plus, with over $1.5 million in an IRA - Heidi Gassman
Heidi Gassman is a partner at Moye White, a Denver law firm offering strategic representation in complex commercial transactions and disputes. She uses her life experience to bring a practical and relatable approach to her estate planning practice. She advises clients on a wide variety of estate planning matters, including estate and trust administration and pre and post-marital agreements. Heidi frequently advises that her clients consider QCD’s.
“Qualified Charitable Distributions are a great way to unburden overfunded IRAs. I recommend them to clients aged 70½ plus, with over $1.5 million in an IRA,” said Heidi Gassman. “While they may be a limited-use tool, they are perfect for certain clients who want to contribute to something that matters to them.”
Donors may use QCDs to support a variety of funds at The Denver Foundation, such as designated funds, field-of-interest funds, and scholarships (including our new The Denver Foundation Community Scholarship Fund), but they may not be distributed to donor-advised funds. The Fund for Denver, The Denver Foundation’s permanent endowment, is also a good option for your QCD.
To learn more about how you can use your retirement assets to make a tax-advantaged philanthropic impact, please get in touch with Rachel Spory-Leek, planned giving officer, at rsleek@denverfoundation.org, or 303.300.1790. You can also visit our estate and planned giving page to learn more.