If you are subject to a Required Minimum Distribution (RMD) from your traditional, rollover or inherited IRA account, donating directly from your IRA to Ten Friends is a great option. Such a donation is called a Qualified Charitable Distribution or QCD. Effectively you can support our work by allowing your dollars to go further.
In case you are wondering, a Required Minimum Distribution (RMD) is a Federal Tax Law requirement that when you turn a certain age (currently 73) you must take a required minimum distribution from your traditional, rollover or inherited IRA accounts. The required minimum distribution is the minimum amount you must withdraw from these IRA accounts each year. The amount of the RMD will be determined by the IRA Administrator(s) of the IRA(s) according to a formula based on the relevant tax law.
How RMD donations work:
In making a QCD to Ten Friends you may avoid some of the income tax that would be required to be paid from a standard withdrawal. The IRS allows individuals who take annual Required Minimum Distributions (RMD) to donate up to $105,000 annually (for 2024) without paying income tax on the transaction by excluding the amount of the QCD from the individual's Adjusted Gross Income (AGI). Couples filing jointly can exclude up to $210,000. The provisions essentially allow you to meet your charitable goals and to satisfy all or part of your annual RMD requirements. The QCD limit is tied to inflation and you should check online to see the amount for future years.
What are the IRA charitable rules?
(Please note that this information is provided as general advice and doesn't cover all of the fine points of RMD's and QCD's. We suggest you contact your tax accountant, financial advisor or financial professional or perform your own research to determine how the donation will work for you.)
The steps to make an IRA Qualified Charitable Distribution to Ten Friends
Ten Friends
PO Box 868
Sisters, Oregon 97759
We thank you for considering making a RMD donation to Ten Friends
Resource Information on Required Minimum Distributions IRS Required Minimum Distribution Information Retirement Topics — Required Minimum Distributions (RMDs) | Internal Revenue Service (irs.gov) AARP Required Minimum Distribution Calculator Required Minimum Distribution (RMD) Calculator (aarp.org) Mass Mutual Article A charitable move with tax and RMD benefits | MassMutual Forbes Article How To Donate Your RMD Using Qualified Charitable Distributions (forbes.com) Putman Investments Investor Ed | Donating IRA assets to charity (putnam.com) |