Giving of RMDs from Retirement Accounts

Donations of Required Minimum Distributions from Retirement Accounts

Did you know that you can make a donation of all or a portion of the Required Minimum Distribution from your retirement account to tax exempt charities such as St. Mark's and your donation will be tax exempt?

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Here's how it works. If a person is at least age 70½, they must take at least a minimum distribution from their IRA or incur a penalty equal to one-half of the otherwise required minimum distribution amount. They may take more than the minimum at their discretion. These individuals may instruct their IRA account manager to distribute any amount of their choosing to one or more tax exempt charities such as St. Mark’s.

When that is done, it is considered to be a tax exempt contribution. St. Mark’s would acknowledge to the giver the receipt of that contribution from their IRA. Also, this contribution is tax exempt even if the individual does not itemize deductions for income tax purposes because the IRA account manager would not identify this to the IRS as reportable income in accordance with the tax code. 

For more information about Qualified Charitable Distributions, check out the Internal Revenue Service Publication 590-B, “Distributions from Individual Retirement Arrangements (IRAs)” or speak with your tax advisor.