Did you know that if you’re at the age where you need to take a required minimum distribution (RMD) from your IRA, you can transfer up to $100,000 directly to a qualified nonprofit like Momentum for Health each year tax-free?
By transferring your IRA distribution directly to a qualified nonprofit, it counts as your RMD, and you won’t have to include the distribution as taxable income.
Before 2020, individuals had to start taking RMDs when they turned 70½. However, the SECURE 2.0 Act has pushed the starting age for RMDs to 73 for those who turn 72 on or after January 1, 2023.
Despite the delay in RMD starting age, individuals can still make Qualified Charitable Distributions (QCDs) from their IRAs as early as age 70½.
Please continue reading to learn how to make your contribution or get in touch with our Director of Development with any questions.
Kevin J. Gonzalez, Ed.D., MBA
Director of Development
Phone: 669.213.1564
Email: kgonzalez@momentumforhealth.org
How to Make Your Contribution
1. Contact Your IRA Administrator:
Reach out to your IRA administrator to initiate the transfer. Provide them with the necessary details, including the amount you wish to donate and Momentum for Health's information.
2. Complete the Transfer:
Your IRA administrator will handle the transfer process on your behalf. They'll ensure that the funds are sent directly to Momentum for Health, qualifying as a tax-free distribution.
3. Confirmation and Acknowledgement:
Once the transfer is complete, you'll receive confirmation from your IRA administrator. Momentum for Health will also acknowledge your generous contribution and provide any necessary documentation for tax purposes.
You can…
- Transfer up to $100,000 in a calendar year from your IRA directly to Momentum for Health, completely tax-free.
- If your spouse has a separate IRA, they can also make a tax-free transfer of up to $100,000 per year.
- You have the flexibility to transfer your entire RMD or just a part of it.
- Each year, you can decide whether and how much of your RMD to use for charitable donations.
- You have the option to support multiple charities with your IRA distributions.
Benefits of Using an IRA Charitable Rollover
- You get tax benefits without needing to itemize your deductions.
- The distribution counts towards your required minimum distribution and is excluded from your taxable income for federal income taxes, reducing your overall taxable income.
- Since the distribution is tax-free, you can increase your charitable giving without any additional cost to you.
*Please note that Momentum for Health does not offer legal, tax, or financial advice. When exploring gifting options, it's advisable to consult your own legal, tax, and/or financial professionals.