IRA Charitable Rollover

Use Your Traditional IRA to Make a “Tax-Free” Gift to the Foundation for VPS.

The Qualified Charitable Distribution (QCD) is an excellent way to support Vancouver students and receive tax benefits in return. As you plan your required minimum distributions (RMD), consider using your IRA account to make the most of your charitable giving. You receive a tax benefit even if you take the standard deduction! The transfer does not affect your taxable income, does not require you to itemize deductions, and it could satisfy all or part of your required minimum distribution. And you enjoy the benefit of watching your funds make positive impact in your community! 

It’s important to consider your tax situation before deciding whether to make a charitable contribution from your IRA. Check with your financial advisor to see if this is a good option for you.

To Qualify

  • You must be 70½ or older at the time of gift.
  • Distributions must be made directly from a traditional IRA account by your IRA administrator.
  • Gifts must go directly to the Foundation for VPS. Distributions to donor-advised funds do not qualify.
  • Gifts from 401(k), 403(b), “ongoing” SEP or SIMPLE IRAs, and other plans do not qualify. Ask your financial advisor if it would make sense for you to create a traditional IRA account so you can benefit from an IRA Qualified Charitable Distribution.

Tax Benefits

  • IRA Qualified Charitable Distributions are excluded as gross income for federal income tax purposes on your IRS Form 1040.
  • The gift counts toward your required minimum distribution for the year in which you made the gift.
  • You could avoid a higher tax bracket that might otherwise result from adding an RMD to your income.


Please let us know if you have already named us as a beneficiary of your retirement assets. We would like to thank you and recognize you for your gift.

Tools

This is general information we are happy to discuss further. We do however recommend you review your charitable gifting plans with your financial advisor, tax professional, and/or estate attorney, to best understand how a charitable gifting strategy could benefit you.