What is the procedure to execute an IRA Charitable Rollover? It is simple!
The Qualified Charitable Distribution (QCD) is an excellent way to show your support for Fontbonne University and receive tax benefits in return. As you plan your required minimum distributions (RMD), consider using your IRA account to make the most of your charitable giving. You receive a tax benefit even if you take the standard deduction!
It's important to consider your tax situation before deciding whether to make a charitable contribution from your IRA. Be sure to share this gift plan with your financial advisor.
John is 73 and wants to contribute $20,000 to Fontbonne University. He has somewhat over $500,000 in his IRA, and his minimum required distribution would be about $20,000. He can authorize the administrator of his IRA to transfer $20,000 directly to Fontbonne University in a "qualified charitable distribution" or QCD. John will not be eligible for a charitable income tax deduction, but because the entire amount of the QCD is excluded from income, he still receives tax savings. The $20,000 distributed to Fontbonne University will be counted toward his annual required minimum distribution (RMD), and he will not pay income tax on the portion given to charity.
Note: 73 is the age when required to take out the RMD. The earliest age John can withdraw voluntarily from his retirement is 59.5. And the earliest he can make a QCD is 70.5. These numbers can get confusing because if John is between 70.5 and 73, he can still make a QCD but will not enjoy the tax advantage if he is not taking out a distribution.
For more information, please contact us by phone at (314) 719-3607.
If your administrator provides you an IRA checkbook, please note that the date of your QCD is NOT the date you send the distribution check, but the date that your IRA administrator transfers the funds to the charity. If you want your distribution check to be credited toward the current tax year, it is critical that you mail your check several weeks before the end of the year to ensure there is time for the check to be received by common reporting standards (CRS) and to clear your account. This is especially true if you are relying on those gifts to fulfill your required minimum distribution.
Tax ID:
43-0694556
There are several ways to send a gift from a qualified retirement account to Fontbonne University. Once you've decided how you want the check sent to us, follow the appropriate procedure below.
If you are requesting that your IRA administrator send a check directly to Fontbonne University:
If you have check-writing capability on your IRA account:
If your IRA administrator is sending the check directly to you, the check must be payable to Fontbonne University:
An important note: No matter how your check is sent to Fontbonne University, we need your name and address to accompany the check in order to correctly credit and acknowledge your gift.
Questions? Please contact us by phone at (314) 719-3607. We are here to help.
Be sure to check with your financial advisor to determine whether this gift plan is right for you. This information is not meant as tax or legal advice.
What's the IRS Rule?