Are you 70 ½ or older?  Are your required minimum IRA withdrawals greater than you need, or care to receive? Would you like to reduce the taxable income from your IRA?

The IRA charitable rollover (also called a qualified charitable distribution or QCD) is a terrific way to make a tax-free gift to St. Sebastian’s School. Your gift from your IRA can satisfy your required minimum distribution without increasing your income taxes. Although you don’t get an income tax charitable deduction for the gift, you don’t pay taxes on your IRA withdrawal. In effect, the IRA charitable rollover is a tax-reducing and tax-free way to make a gift.  

If you are 70 ½ or older you can tell your IRA administrator to transfer your gift directly from your traditional IRA or Roth IRA account to St. Sebastian’s. 

Consider these important requirements to make an IRA charitable rollover:

  • You must be age 70 1/2 or older when the gift is made.
  • The gift must come from a traditional IRA or Roth IRA account. (401(k), 403(b), SEP IRA accounts, and other retirement accounts do not qualify.)
  • The gift must come directly from your IRA administrator to St. Sebastian’s.
  • Total IRA charitable rollover gifts in any one year cannot exceed $100,000.
  • If you don’t itemize deductions and are not yet required to take your RMD, a QCD offers all of the benefits of an itemized income tax charitable deduction.
  • If you are age 72 or older and must take your RMD, a QCD can satisfy your RMD without increasing your income taxes.
  • The gift from your IRA will not be available as an income tax charitable deduction.
  • The gift from your IRA will be excluded from income.

For those individuals ages under 70 ½ you are still able to donate your IRA assets, however, please check with your financial advisor to see if this makes sense for you.

If you have included St. Sebastian’s in your estate plans or would like more information about the Monsignor Charles D. McInnis Society, please contact James Barron in the Planned Giving Office at 781-247-0158 or james_barron@stsebs.org