Make a Gift Tax-Free With Your IRA
If you are 70½ years old or older, you can take advantage of a simple way to benefit the National Council of the U.S., Society of St. Vincent de Paul and receive tax benefits in return. You can give any amount up to $100,000 per year from your IRA directly to a qualified charity without paying income tax. This popular gift option is commonly called the IRA charitable rollover, or a Qualified Charitable Distribution (QCD).
Why Consider This Gift?
Your gift will be put to use today, allowing you to see the difference your donation is making, and you will pay no income taxes on the gift, up to $100,000. The transfer generates neither taxable income nor a tax deduction, so you benefit even if you do not itemize your deductions.
If you reached the age of 70½ on or before December 31, 2019, you can use your gift to satisfy all or part of your required minimum distribution for the year. If you turn 70½ on or after January 1, 2020, you can use your gift to satisfy all or part of your required minimum distribution starting at the age of 72. (Note: The RMD requirement has been waived for 2020, per the CARES Act signed into law on March 27, 2020.)
Since the gift does not count as income, it can reduce your annual income level. This, in turn, may help lower your Medicare premiums and decrease the amount of Social Security subject to tax.
Frequently Asked Questions
Can my gift be used as my required minimum distribution under the law?
Yes. If you reached the age of 70½ on or before December 31, 2019, you can use your gift to satisfy all or part of your required minimum distribution for the year. If you turn 70½ on or after January 1, 2020, you can use your gift to satisfy all or part of your required minimum distribution starting at the age of 72. Contact your IRA administrator to complete the gift. (Note: The RMD requirement has been waived for 2020, per the CARES Act.) CLICK HERE for a sample IRA distribution request letter.
When do I need to make my gift?
We must receive your gift by December 31 for your donation to qualify this year. If you have check-writing privileges on your IRA account, please mail your check by December 18 to give us time to process your gift before the end of the year.
My spouse and I would like to give more than $100,000. How can we do that?
If you have a spouse (as defined by the IRS) who is 70½ or older and has an IRA, he or she can also give up to $100,000 from his or her IRA.
I've already named the National Conference of the U.S., Society of St. Vincent de Paul as the beneficiary of my IRA. What are the benefits if I make a gift now instead of after I pass?
By making a gift of up to $100,000 from your IRA this year, you can see your philanthropic dollars at work. You are jump-starting the legacy of love and giving yourself the joy of watching your philanthropy serve your neighbors in need. Moreover, you can fulfill any outstanding pledge by transferring that amount from your IRA as long as it is $100,000 or less for the year.
I'm turning age 70½ in a few months. Can I make this gift now?
No. The legislation requires you to reach age 70½ by the date you make the gift.
I have pension and IRA retirement accounts. Does it matter which retirement account I use?
Yes. Direct gifts to a qualified charity can be made only from an IRA. You may, however, be able to roll assets from a pension, profit sharing, 401(k) or 403(b) plan into an IRA and then make the transfer from the IRA directly to the National Conference of the U.S., Society of St. Vincent de Paul. To determine if a rollover to an IRA is available for your plan, speak with your plan administrator and financial advisor.
Do I need to give my entire IRA to be eligible for the tax benefits?
No. You can give any amount, as long as it is $100,000 or less per year. If your IRA is valued at more than $100,000, you can transfer a portion of it to fund a charitable gift.
I have two charities I want to support. Can I give $100,000 from my IRA to each?
No. Under the law, you can give a maximum of $100,000. You may make donations of any combination that totals $100,000 or less. Any amount of more than $100,000 in one year must be reported as taxable income.
Legal Title: National Council of the United States, Society of St. Vincent de Paul, Inc.
Tax ID#: 13-5562362
Address to mail gifts: 66 Progress Parkway,Maryland Heights, MO 63043-3706