If you are 70 1/2 or older, you can make a tax-free distribution from your IRA to OUUC
This is called a qualified charitable distribution (QCD), and it is nontaxable if it is made directly from your IRA to OUUC or other qualified charity. If you have retirement assets in a 401(k), 403(b), deferred compensation, etc., you must first roll those assets into an IRA, and then can make the transfer from the IRA directly to the charity.
- Individuals who are at least age 70½ at the time of the contribution.
How much can I transfer?
- Up to $100,000 for each year.
From what accounts can I make transfers?
- Transfers must come from IRAs (other than a SEP or SIMPLE IRA) directly to the charity.
What are the tax implications?
- The transfer is not considered income for federal tax purposes if it goes directly from the IRA provider to the charity. Because the distribution is nontaxable, you are not eligible for an income tax charitable deduction.
- Individuals are required to take a required minimum distributions (RMD) from their retirement plans each beginning the year after they turn 70 ½. IRA transfers to the charity reduces the taxable amount of your RMD.
How can I transfer funds to OUUC from my IRA?
- Contact your IRA custodian to contribute from your IRA to OUUC. This contribution will be acknowledged by OUUC and count toward your pledge.