Overview of Qualified Charitable Distribution (QCD)
A qualified charitable distribution (QCD) allows IRA holders, age 70 ½ or older, to donate to a qualified charity from their Traditional or Roth IRA (including inherited) tax-free.
Requirements:
- The donating IRA holder must have attained age 70 ½ on or before the date the QCD check is issued. If an inherited IRA, the beneficial owner must have attained age 70 ½ or older.
- The funds must be issued directly to a qualified charity from a Traditional or Roth IRA. Daily Acts is a qualified charity with a 501c3 determination.
- The donor cannot receive any benefit from making a QCD and the QCD cannot be deposited by the charity into a donor advised fund.
- The amount cannot exceed $100,000 annually, per donor.
- Checks must be issued by December 31st in order to apply to the current calendar year. If a Money Market check is written, it will apply to the year in which it is cashed by Daily Acts Organization.
Best Practices:
- Consult your tax professional to ensure it is in your best interest to complete a QCD and your distribution qualifies.
- Notify the charity (Daily Acts Organization) they will be receiving a check from you and obtain the following important details:
- Checks should be made payable to: Daily Acts Organization
- Mailing Address :
P.O. Box 293
Petaluma, CA 94953 - Email [email protected] so we can issue you a receipt to you, upon receiving the funds
- Contact your Financial Advisor to request the funds be issued from your Traditional or Roth IRA as a QCD to Daily Acts.
- If you do not hear from us (Daily Acts), follow up 7-10 business days after the check is issued. Verify we received the funds and have mailed a receipt to you
- After obtaining the receipt from Daily Acts, mail a copy to your tax professional and keep the original with your permanent tax records.
If you have any questions or would like to discuss this option further, please don’t hesitate to contact Deb McClellan at [email protected], or give us a call at (707) 789-9664.