Qualified Charitable Distribution
Do you have an IRA? Have you reached the age of 70½? You can make a tax-free contribution of up to $100,000 directly from your IRA to KBACH each year and lower the income and taxes from your IRA withdrawals. Your IRA gift to KBACH will count towards your minimum required distribution and support the music you love on KBACH.
Benefits of a Qualified Charitable Distribution
- Avoid taxes on transfers of up to $100,000 from your IRA to our organization
- Satisfy your required minimum distribution (RMD) for the year
- Reduce your taxable income, even if you do not itemize deductions
- Make a gift that is not subject to the deduction limits on charitable gifts
- Help further the work and mission of our organization
How a Qualified Charitable Distribution gift works
- Contact your IRA plan administrator to make a gift from your IRA to Friends of Public Radio Arizona benefitting KBACH
- Your IRA funds will be directly transferred to our organization to help continue our important work
- Please note that Qualified Charitable Distribution gifts do not qualify for a charitable deduction
- Here is a sample letter to your plan administrator
How to make a Qualified Charitable Distribution gift to benefit KBACH
Full Legal Name: Friends of Public Radio Arizona
Federal Tax I.D. Number: 01-0579687
Address: PO Box 62228, Phoenix, Arizona 85082-2228
For the Benefit of: KBACH
Frequently Asked Questions
I’ve already named your organization as the beneficiary of my IRA. What are the benefits if I make a gift now instead of after my lifetime?
By making a gift this year of up to $100,000 from your IRA, you can see your philanthropic dollars at work. You are jump-starting the legacy you would like to leave and giving yourself the joy of watching your philanthropy take shape. Moreover, you can fulfill any outstanding pledge you may have already made by transferring that amount from your IRA under this legislation 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 several retirement accounts—some are pensions and some are IRAs. Does it matter which retirement account I use?
Yes. Direct Qualified Charitable Distributions to a qualified charity can only be made from an IRA. Under certain circumstances, however, you may 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 Friends of Public Radio Arizona. To determine if a rollover to an IRA is available for your plan, speak with your plan administrator.
Can my gift be used as my minimum required distribution under the law?
Yes, absolutely. If you have not yet taken your required minimum distribution, a Qualified Charitable Distribution can satisfy all or part of that requirement. Contact your IRA custodian to complete the gift.
Do I need to give my entire IRA to be eligible for the tax benefits?
No. You can give any amount under this provision, as long as it is $100,000 or less this 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. For example, you can give each organization $50,000 this year or any other combination that totals $100,000 or less. Any amount of more than $100,000 in one year must be reported as taxable income.
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, they can also give up to $100,000 from their IRA.
It is wise to consult with your tax professionals if you are contemplating a charitable gift under the extended law. Please feel free to contact Brian Fergus at (480) 774-8460 or [email protected] with any questions you may have.
The information on this website is not intended as legal or tax advice. For such advice, please consult an attorney or tax advisor. References to estate and income taxes include federal taxes only. State income/estate taxes or state law may impact your results.
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