Participants, Partners, Professionals, Veterans, Volunteers

Over 70? IRA QCDs are a great way to Donate to High Hopes

Qualified Charitable Donations and Required Minimum Distributions.

The Internal Revenue Service (IRS) requires owners of Individual Retirement Accounts (IRAs) to begin drawing down payments from their IRA after they turn 70½ years old. You must make these distributions each year, and they are known as Required Minimum Distributions (RMD)

Donating to your favorite 501(c) 3 charities – including High Hopes – is an easy way to satisfy your RMDs.

The IRS usually treats these distributions from an IRA as taxable income. However, if you make a Qualified Charitable Distribution (QCD), this is not the case. A QCD is a direct transfer of funds from your IRA trustee to a qualified charity.

Making a QCD is easy.

As you can’t make the distribution directly to a charity, your IRA administrator must transfer the money directly to High Hopes. Contact your plan administrator and tell them you would like to make a charitable donation to High Hopes from your IRA. They will send you a distribution form for you to fill out and return. If you or they have any questions about the process, you can call our Finance Director at 860.434.1974 x111 or Development Director at 860.434.1974 x122.

At the end of the year, your IRA administrator will provide you with a Form 1099-R so you can report it on your taxes as a non-taxed QCD.

High Hopes cannot provide tax advice; you should always consult your qualified Financial Adviser and Tax Professional for advice or information.

Sign up for our newsletter