As a result of the increased standard deduction, in recent years most taxpayers no longer itemize their income tax deductions and, therefore, cannot take advantage of the charitable deduction. However, a qualified charitable distribution (QCD also referred to as the IRA Charitable Rollover ) can provide the tax savings of a charitable deduction even if you don’t itemize.
The IRA Qualified Charitable Distribution, or QCD, is a great way to make a tax-free gift to Newton-Wellesley Hospital. Even better, if you have a Required Minimum Distribution (RMD), your QCD gift will reduce the taxable amount you are required to withdraw.
How Do I Qualify?
The IRA QCD offers multiple benefits for making gifts from your traditional or Roth IRA.
- You must be 70 ½ years or older at the time of the gift.
- Gifts must go directly from your IRA to Newton-Wellesley Hospital.
- Gifts must come from a traditional IRA or Roth IRA account.
- For 2024, total QCD gifts cannot exceed $105,000 per donor.
Benefits of a QCD:
- If you don’t itemize deductions and are not yet required to take your RMD, a QCD offers all of the benefits of an itemized income tax charitable deduction
- If you are age 73 or older and must take your RMD, a QCD can satisfy your RMD without increasing your income taxes.
- You may direct your gift to a program or area of your choice.
- The charitable IRA QCD may save you from owing higher taxes on Social Security benefits and paying higher Medicare premiums.
- It is a wonderful way to create an immediate impact on Newton-Wellesley Hospital.
How can I make a QCD?
Newton-Wellesley Hospital's Federal Tax id is 04-2103611.
Your IRA administrator can help you make a qualified charitable distribution from your IRA. Be aware that many administrators require you to use their QCD distribution form and comply with other requirements. Please note that it is important to follow your financial institution’s forms and procedures to ensure you receive the tax benefits of a QCD.
