Make an IRA Qualified Charitable Distribution
NEW LAW: No Required Minimum Distributions in 2020!
As a part of the CARES Act, Congress has temporarily eliminated most required minimum distributions (“RMD”) from retirement plans during 2020. Check with your financial advisor to see how this might affect you. Even without an RMD, a QCD remains a great way to make tax advantageous contributions. Learn more about the CARES Act.
Thank you for your interest in making a tax-wise gift to reach the coming generations! Send a letter to your IRA custodian requesting a charitable distribution and a letter to InterVarsity to notify us of your coming gift and how you would like it applied.
Important Note: Many large IRA administrators now offer IRA owners the option to write checks off their IRA account. However, the date of gift is not established when you put the check in the mail. Rather, the Qualified Charitable Distribution rules require action by the IRA administrator, which means the date of gift is established when the IRA administrator transfers funds after the charity deposits the check. If you mail an IRA check in late December and the charity doesn’t cash it until early January, two problems occur:
1) You will have to declare your QCD on the following year's tax return.
2) If you are age 72 or older and miss fulfilling all of your required minimum distribution (RMD) for the year because of the delay, you will have to pay a 50% penalty tax on the amount of under distribution.
We encourage you to make your charitable Qualified Charitable Distribution gifts several weeks before the end of the year if writing your own check.