Qualified charitable distributions allow people 70 ½ and older to give up to $100,000 from their Individual Retirement Account (IRA) to charity each year. In most years, the distribution counts toward your minimum required distribution for the year and it is excluded from your adjusted gross income. It is important to note that in 2020 there is no mandated IRA payout required (this was done as part of the pandemic supports to allow IRA holders to rebuild their accounts after stock market losses).
Charitable distributions from an IRA are not eligible for a charitable tax deduction since they are exempt from income tax. The tax-free transfer lets you benefit from making a gift to The Arc of Massachusetts, even without itemizing.
You should note that the gift from your IRA must be made directly by the custodian of your IRA, not you. Call the financial institution that holds your IRA and ask about its charitable rollover procedures. Please consult your tax advisor to confirm how you would benefit from this opportunity.
Please contact Katrin Aback, Director of Development, at firstname.lastname@example.org or 781-891-6270 x105 if you have any questions.