Qualified Charitable Distributions from IRAs

A qualified charitable distribution (QCD), alternatively referred to as an IRA charitable rollover gift, allows individuals 70½ or older to make an outright gift of up to $100,000 from an IRA directly to Mount Mercy and to exclude it from taxable income.

How it works:

• The donor must be age 70 ½ or older when the gift is made.
• The gift must come from an IRA account (Traditional or Roth). (401(k), 403(b), SEP IRA accounts, and other retirement accounts do not qualify.)
• The gift must come directly from your IRA administrator to Mount Mercy.
• Total QCD gifts in any one year cannot exceed $100,000.
• 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 72 or older and must take your RMD, a QCD can satisfy your RMD without increasing your income taxes.
• Distributions cannot be made to a donor-advised fund or a supporting organization (including most private foundations) or used to fund a charitable gift annuity or charitable remainder trust.
• The gift from your IRA will not be available as an income tax charitable deduction.
• The gift from your IRA will be excluded from income.

How to make it happen:

Contact your advisor, retirement plan administrator, or plan fiduciary company to initiate a transfer. You may also complete this form, which is accepted by most IRA custodians.

Please email us or call 716-825-8796 ext. 324 with any questions so we can help you to take advantage of this special gift opportunity. 

Benefits of a QCD

• Satisfies all or part of annual required minimum distribution (RMD) while providing a charitable giving strategy for donors who do not need the additional income.
• Maximizes giving by allowing donors to give outside of the 60 percent of adjusted gross income (AGI) charitable deduction limit.
• Provides value for nonitemizers and donors who live in states that do not allow charitable deductions.
• Minimizes tax liability and can put donors at a lower threshold for Medicare premiums by reducing income.

Donors should work closely with their IRA custodian to request a direct distribution to Mount Mercy.

Communicating Your Intentions

If you have provided for Mount Mercy Academy in your estate plans but have not previously notified the school of your intentions, please contact the Office of Institutional Advancement at 716-825-8796, ext 324 or institutionaladvancement@mtmercy.org.  Sharing your plans with us allows us to express our gratitude to you during your lifetime, ensures that your wishes will be met, and also assists the school’s long-term planning efforts.

Note: The information on Mount Mercy’s pages on planned giving vehicles is intended to provide general information that we hope will be helpful in your tax, estate, and charitable planning. It is not intended as legal advice and should not be relied upon as legal advice. For advice or assistance with your particular situation, you should consult an attorney or other professional adviser.