Once you turn 70 ½, the IRS requires you to start taking “required minimum distributions” out of your traditional Individual Retirement Account (IRA). In general, these distributions are taxable in the year you receive them.
But, also beginning at 70 ½, you can make contributions directly from your IRA to a qualified charitable organization such as Emmaus that reduce your taxable income. These “Qualified Charitable Distributions” (QCD) count towards your required minimum distribution, but aren’t taxable to you. That’s a big tax savings benefit, particularly if, like most seniors, you won’t be itemizing deductions on your individual tax return due to the increase in the standard deduction.
There are certain rules that must be followed, such as the QCD must be made directly by the trustee of your IRA to the organization eligible to receive tax deductible contributions. We have a form letter you can send to the custodian of your IRA to authorize contributions to Emmaus that complies with this requirement. Please see links at the left for form letter.
For more information, contact the parish office, your IRA custodian, or your tax advisor.