IRA Distributions

Make Qualified Distributions from your IRAs

Presbyterians can support their churches and favorite ministries with a gift from their IRA (if they meet the qualifications).

  • Qualified charitable distributions from Individual Retirement Accounts may offer tax advantages.
  • Donors must be 70 1/2 or older to qualify.

At the close of 2015, lawmakers approved the Protecting Americans from Tax Hikes Act. A provision of this law made Qualified Charitable Distributions from individual retirement accounts permanent. This is good news for Presbyterians who want to support their favorite missions and congregations, and receive tax benefits for doing so.
A charitable distribution meets the qualifications if it meets all of the following criteria:

  • Donor must be 70 1/2 or older at the time the distribution is made.
  • The distribution must be an otherwise taxable distribution from an IRA (other than an ongoing SEP or SIMPLE IRA).
  • The distribution must be made directly to an organization eligible to receive tax deductible contributions (certain exclusions apply).
  • Donors are limited to $100,000 annually.
  • The charity receiving the gift must provide donor proper substantiation of the gift. (The Presbyterian Foundation provides such substantiation.)
Donors may find there are many benefits to giving from an IRA.

  • The donation can satisfy required minimum distribution in the year the qualified charitable donation is made.
  • The donation amount is not included in the donor’s adjusted gross income, helping to potentially avoid increased taxes on social security income, higher Medicare premiums, and the loss of deductions/exemptions.
  • Giving in this way provides donors that use the standard deduction a tax break for the contribution.
Direct gifts from IRAs to donor-advised funds do not qualify for treatment as a qualified charitable distribution (QCD).