Congress has made the IRA QCD permanent and you can make a thoughtful contribution to Mass Hort, satisfy your required minimum distribution (RMD), and avoid income tax you would otherwise have to pay on mandatory withdrawals.
The IRA QCD provides you with an excellent opportunity to make a gift during your lifetime from an asset that would be subject to multiple levels of taxation if it remained in your taxable estate.
What you need to know:
- You must be over age 70½
- Your gift (up to $100,000) must be transferred directly from the IRA account by the IRA custodian to Mass Hort.
- The IRA custodian will have an easy-to-complete form to facilitate the distribution.
- For gifts to be counted toward the 2019 required minimum distribution (RMD), transfers must be made by December 31, 2019.
- You can count your gift towards your annual required minimum distribution.
- Under current tax laws, keeping your IRA distribution out of your Adjusted Gross Income (AGI) may save you federal and state taxes.
- Your Medicare Part B and D premiums are affected by your AGI. The QCD will reduce your AGI, which could lower your Medicare premiums.
- The transfer process is quick and requires minimal paperwork.
Please consult your professional advisor or IRA administrator; or contact Elaine Lawrence, Director of Development, at 617-933-4945 or firstname.lastname@example.org.