IRA Distributions

Make Qualified Distributions from your IRAs

Donors 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.

  • For more information, contact your personal tax advisor.

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 72 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 the donor with proper substantiation of the gift. (The Outreach Foundation provides such substantiation).

  • Giving can be to a designated ministry/project of The Outreach Foundation.

Donors may find there are many benefits to giving from an IRA.

  • The donation can satisfy the 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).

We are happy to answer your questions about giving from a retirement account or any other kind of donation. Please contact Jenna Crunk at The Outreach Foundation at 615-778-8881 or The Presbyterian Foundation at 800-858-6127.