Giving from your IRA

Did you know if you are 70½ or older, you can make a gift directly to the Boys and Girls Club of East County Foundation from an individual retirement account (IRA)? Continue reading for more information about this tax-wise way to give and see if this giving technique would be advantageous for you.

Some benefits of making your charitable gifts from your IRA.

• You may generally give in any amount up to $105,000 directly from your IRA. These gifts are called qualified charitable distributions (QCDs).

• If you do not expect to itemize your deductions or if your deductions are limited, you may find QCD gifts to be especially beneficial.

• When you give directly from your IRA—rather than withdrawing these funds—you won’t increase your adjusted gross income or subject your Social Security income to more taxes.

• These gifts can count toward all or part of your annual required minimum distribution (RMD). While IRA owners age 70½ or older can make gifts directly to charities from their IRAs, the minimum age for taking RMDs is 73.

• If you find you can continue adding to your IRA after age 70½, the amount of QCD gifts you can make will be reduced.

Can I use my other retirement plan assets to make these gifts?

• No, the QCD is only possible with an IRA. However, it is possible to roll funds from other retirement plans into IRAs to take advantage of a QCD.

• It is possible for individuals to make charitable gifts with their retirement plan withdrawals—whether IRA, 401(k), 403(b) or other similar arrangements. When doing this, you will recognize income on your tax return, but you also can deduct the amount of your gift.

Helpful instructions for filing your tax return next year if you make QCDs:

• You will receive a 1099-R that shows your 2024 distribution. This is the amount you will enter on line 4a of your 1040 or 1040SR.

• On line 4b, subtract the total amount of your QCDs and fill in the remainder (even if $0), and write “QCD” next to that amount. (For those who file electronically, there will be an option to select “QCD.”

As always, please contact your advisor with questions.