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Charitable Giving Tip: Save Taxes with an IRA Qualified Charitable Distribution


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You may benefit from an IRA charitable rollover.

If you are 70 ½ or older and hold an Individual Retirement Account (IRA), you can initiate an IRA qualified charitable distribution (QCD), also known as an IRA charitable rollover, to your named endowment fund with the Jewish Community Foundation, Inc. and save on taxes.


This gift will leave a lasting legacy that benefits the Jewish Federation of Southern New Jersey (or any Federation agency or synagogue or day school you choose) for future generations.


By doing so, you can potentially make a larger philanthropic impact than previously possible and enjoy significant tax advantages.


In an article posted on Nasdaq.com that lists "The Most-Overlooked Tax Breaks for Retirees" here is how you can save on taxes through a QCD, while also counting towards your required minimum distribution (RMD):


Once you reach age 70½, there's a tax-friendly way to make charitable donations even if you don't itemize. It's called a qualified charitable distribution (or QCD for short). With a QCD, you can transfer up to $100,000 each year from your traditional IRAs directly to charity. If you're married, your spouse can transfer an additional $100,000 to charity from his or her IRAs. The transfer is excluded from taxable income, and it counts toward your required minimum distribution. That's a win-win! But you can't also claim the tax-free transfer as a charitable deduction on Schedule A if you do itemize.

This can be a great way to start a legacy for the community or to build an existing fund while avoiding taxes. In case you were wondering, a QCD can not go do a donor advised fund, per IRS regulations.


Please note that the JCF does not provide tax advice, and we encourage you to consult with your trusted advisor to determine the outcome of your prospective donation. The JCF welcomes the chance to work with you and your advisor to maximize your philanthropy.


To learn more, please contact the JCF today at infojcf@jfedsnj.org.