Qualified charitable IRA rollover gifts to the Versiti Blood Research Institute Foundation

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Donna Oleniczak

Stewardship & Gift Administration

Email 414-937-6799

Charitable IRA Rollover Gifts

Did you know that the gift of a qualified charitable distribution (QCD) benefits donors aged 70 ½ and up?

As you plan your charitable giving for the year, consider using your IRA account to make the most of your philanthropic donations. You receive a tax benefit even if you take the standard deduction!

It’s important to consider your tax situation before deciding whether to make a charitable contribution from your IRA. Be sure to share this plan with your financial advisor.

Qualifying for a QCD

You must be 70 ½ or older at the time of the gift.
Distributions must be made directly from a traditional IRA account by your IRA administrator to Versiti Blood Research Institute Foundation (VBRIF).
Gifts must be outright, meaning they go directly to VBRIF. Distributions to donor-advised funds or life-income arrangements, such as charitable remainder trusts and charitable gift annuities, do not qualify.
Gifts from 401(k), 403(b), SEP and other plans do not qualify. Ask your financial advisor if it would make sense for you to create a traditional IRA account so you can benefit from an IRA qualified charitable distribution.

Tax benefits of a QCD

IRA qualified charitable distributions are excluded as gross income for federal income tax purposes on your IRS Form 1040.
The gift counts toward your required minimum distribution for the year in which you made the gift. You could avoid a higher tax bracket that might otherwise result from adding an RMD to your income.

Important

Be sure to check with your financial advisor to determine whether this gift plan is right for you. This information is not meant as tax or legal advice.

The planned giving information presented by Versiti is not offered as legal or tax advice.

Qualified Charitable Distributions FAQ's

Can I use the QCD to fund life-income gifts (charitable gift annuities, charitable remainder trusts or pooled income funds), donor advised funds or supporting organizations?

No, these are not eligible.
Can my spouse also make a qualified charitable distribution?

Yes. Every individual who is the owner of a traditional IRA can use the qualified charitable distribution for up to $100,000 each year.
Does this transfer qualify as my required minimum distribution?

Yes. Once you reach 72, you are required to take minimum distributions from your retirement plans each year, according to a federal formula. QCDs count toward your minimum required distribution for the year in which you make the gift.
From what accounts can I make transfers?

Distributions must come from your IRAs directly to VBRIF. If you wish to help us with a gift from another retirement asset, such as a 401(k) or 403(b), you must first roll those funds into an IRA. Then you can direct the IRA administrator to distribute the funds from the IRA directly to VBRIF.
How do I know if a qualified charitable distribution is right for me?

Share this information with your financial advisor.
How much can I distribute?

Up to $100,000 per year. The distribution must be outright to charity.
How will VBRIF count the gift?

We will give you full credit for the entire gift amount. You will also receive a letter, which states that the gift qualifies as a QCD to use for tax reporting purposes.
What are the tax implications to me?

Federal: You do not recognize the distribution to VBRIF as income, provided it goes directly from the IRA administrator to us. Therefore, you are not entitled to an income tax charitable deduction for your gift.

State: Each state has different laws, so you will need to consult with your own advisors. Some states have a state income tax and will include this distribution as income. Within those states, some will allow for a state income tax charitable deduction and others will not. Other states base their income tax on the federal income or federal tax paid. Some states have no income tax at all.
What’s the IRS rule?

The QCD allows individuals 70 ½ and older to make direct distributions up to $100,000 per year to 501(c)(3) charities without having to count the distributions as income for federal income tax purposes. No charitable deduction may be taken, but distributions will qualify for all or part of the IRA owner’s required minimum distributions.
Who qualifies?

Individuals 70 ½ and older at the time of the contribution (you have to wait until 6 months after your 70^th birthday to make the transfer).