Make a Tax-wise Gift to St. Cecilia School with Your IRA
To give to the St. Cecilia School and receive tax advantages, a qualified charitable distribution (QCD) is the answer. It is a strategy allowing donors to gift money to SCS using individual retirement accounts (IRA).
Below is how a QCD can help donors achieve their philanthropic goals under these rules:
- IRA holder must be over age 70 ½. If donors are 73 or over, the amount of the QCD can count toward satisfying their annual Required Minimum Distribution (RMD).
- Up to $111,000 per calendar year per individual can be donated from an IRA to a qualified 501(c)(3) charitable organization. Keep in mind, the donation limit is per person, not per IRA, so a couple with individual IRAs could give up to $222,000 in 2026.
- QCDs must pass directly from the IRA custodian to SCS, which is a qualified charitable organization.
- QCD may satisfy (or help satisfy) required minimum distribution (RMD) rules if the IRA holder is age 73 or older.
- Donor must indicate on their tax return that the IRA distribution is a QCD.
- QCD can be made from an inherited IRA if the inherited IRA holder is over age 70 ½.
- QCD limits are on a calendar year basis.
- A QCD is NOT available from a simplified employee pension (SEP) or SIMPLE IRA – accounts still receiving ongoing employer contributions.
- Since each individual’s situation is unique, it’s important to seek guidance from a financial advisor and tax professional to explore if this tax-planning tool can maximize tax savings.
MAKE A LASTING IMPACT WITH A QCD!
