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IRA Distributions

You can make contributions to The Life Center from your IRA. The following are some of the basic requirements of Qualified Charitable Donations (QCD):

  • You are at least age 70½ 
  • You have a traditional IRA
  • There is an annual maximum limit of $100,000 that can be made as a QCD 

While QCDs can't be claimed as an itemized charitable deduction they do have significant benefits as follows:

  • QCDs are not included in adjusted gross income (AGI). By having lower AGI; less of your Social Security benefits may be taxed; if you have rental real estate losses, more may be deductible; and you may have lower investment income subject to the 3.8% Medicare surtax. 
  • The Tax Cuts and Jobs Act (TCJA) increased the standard deduction, limited state and local tax deductions to a maximum of $10,000 and eliminated many itemized deductions. Thus many taxpayers will receive limited tax benefits from regular charitable deductions. 
  • A QCD counts as a distribution for purposes of the required minimum distribution (RMD) rules. All or part of your annual RMD (up to the $100,000 maximum annual limit) that you would otherwise be forced to include in your income can go directly to the Life Center.  
  • If you have a traditional IRA to which you have made nondeductible contributions over the years, the IRA balance will include a taxable layer and a nontaxable layer.  QCDs are treated as coming first from the taxable layer. If you contribute all of the taxable IRA amounts over the years, the nontaxable amounts can be withdrawn tax-free.

If you can afford to donate IRA money, you may benefit if the following applies to you:

  • You are 70 1/2 or older;
  • You don’t itemize deductions but use the standard deduction;
  • You need to take an RMD

Caution: You can’t actually receive the distribution.  The check from your IRA must be made out to the Life Center. Have the IRA holder send you the check made out to the Life Center and you can then forward it to us.

*Information provided by tax advisor: Bob Bogardt & Company, LLP
140 Fell Ct #300 Hauppauge, NY 11788 | office: (631) 348-0100