What is an IRA Qualified Charitable Distribution?
Generally, a qualified charitable distribution is an otherwise taxable distribution from an IRA owned by an individual who is age 70½ or over that is paid directly from the IRA to a qualified charity. You may contribute up to a maximum of $100,000 a year to Northwest University and other charities.
See Publication 590-B, Distributions from Individual Retirement Arrangements (IRAs) for additional information.
Can a qualified charitable distribution satisfy my required minimum distribution from an IRA?
Yes, your qualified charitable distributions can satisfy all or part the amount of your required minimum distribution from your IRA.
Benefits of an IRA Qualified Charitable Distribution
- It minimizes the effect on your cash flow since the gift is from an asset, not your checkbook
- Your gift is excluded from taxable income, which is a nice tax benefit if you do not itemize deductions
- It may prevent you from being pushed into a higher tax bracket and help you avoid the limit on charitable deductions
- It may also reduce the Medicare Part B premiums you pay
- It allows you to make a significant gift to support Northwest University
How to Make a Gift from Your IRA
- Contact your IRA custodian to instruct them to make a direct gift (a Qualified Charitable Distribution) from your IRA to Northwest University.
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Notify our office so we know to expect your gift as many custodians send a check without other documentation such as your name. Please tell us your name, the amount, and what the gift is for.
Development Office
425-889-6321
development@northwestu.edu -
Your IRA custodian will send a check directly to Northwest University:
Northwest University
Development Department
PO Box 579
Kirkland, WA 98083-0579 -
Requests to your IRA custodian should be made by December 1st to ensure that Northwest University receives your gift by December 31st.
How are qualified charitable distributions reported on Form 1099-R?
Charitable distributions are reported on Form 1099-R for the calendar year the distribution is made. Qualified Charitable Distributions do not increase your adjusted gross income as a taxable IRA distribution would. Please note that QCDs do not qualify for a charitable deduction. The tax benefit results from the reduced taxable income.
How do I report a qualified charitable distribution on my income tax return?
To report a qualified charitable distribution on your Form 1040 tax return, you generally report the full amount of the charitable distribution on the line for IRA distributions. On the line for the taxable amount, enter zero if the full amount was a qualified charitable distribution. Enter "QCD" next to this line. See the Form 1040 instructions for additional information.
You must also file Form 8606, Non-deductible IRAs, if:
you made the qualified charitable distribution from a traditional IRA in which you had basis and received a distribution from the IRA during the same year, other than the qualified charitable distribution; or the qualified charitable distribution was made from a Roth IRA.
IRA Rollovers
If you are over the age of 70.5, you can rollover up to $100,000 annually from your IRA to Northwest University. These gifts can be made tax-free and will help balance your IRA value with other estate assets. Depending upon your income level, there may be additional tax benefits. The same giving instructions apply for IRA Rollovers as above.
Questions About Giving?
If you have questions or concerns, please us know. Let’s help students carry the call together.