Many supporters of Catholic Extension with an IRA find they have money saved away that they might not need. Direct transfer of funds from an IRA to Catholic Extension via a Qualified Charitable Distribution (QCD) is an effective way to reduce taxes while strengthening the Catholic Church in poor communities across the country.
You simply instruct your IRA administrator to transfer the amount of your gift directly from your IRA to Catholic Extension.
Some rules to keep in mind:
- You must be age 70 ½ or older.
- An individual may transfer up to a total of $100,000 per year, and a married couple may give up to $200,000.
- Your gift must be transferred directly from the IRA account to Catholic Extension.
- Because your gift is a direct transfer of funds from your IRA to Catholic Extension, it does not create taxable income for you and is not considered a charitable tax deduction.
- If you are 72 and older, the transfer of funds counts towards your annual Required Minimum Distribution* from your IRA.
If you are interested in this popular way to help further the mission of Catholic Extension, you can download a sample letter for your IRA administrator here.
Please feel free to contact our Planned Giving Team at (800) 842-7804 or firstname.lastname@example.org if you have any questions.
* Congress has waived the annual Required Minimum Distribution from IRA Accounts in the year 2020 as part of the CARES Act in response to COVID-19. Please consider seeking advice from your financial advisor or tax professional to understand how recent changes to laws governing retirement plans may impact you and your charitable gift.
The information presented is not intended as legal, tax, or other professional advice. For assistance in charitable estate planning, please consult an attorney for legal advice or the services of a qualified professional.