New reasons to give from your IRA

2023 QCD Blog banner

Transfer up to $100,000 from your individual retirement account annually — tax-free!

Are you looking for a way to make a meaningful impact, maximize your tax benefits and leave a legacy for your loved ones? A transfer from your IRA can be easy, flexible and effective solution, and one that many donor partners take advantage of. There are more reasons to give through a Qualified Charitable Distribution (QCD) in 2023 and beyond!

The former benefits still apply: giving through a QCD removes the tax liability that would have been due on the amount withdrawn from your retirement account. Transferring up to $100,000 is an easy process that can help you achieve your personal, philanthropic and financial goals. Beginning in 2023, up to $50,000 of your gift given in this way can be used to form a charitable gift annuity, which allows you to receive fixed payments for life.

Below are the simple steps to make a QCD from your IRA. Please call our development team at 616.454.1751 if you have any questions.

Step one:
Ask your IRA administrator to transfer up to $100,000 of your IRA assets directly to the Community Foundation. You must be 70 1/2 years old or older. If married, each spouse can transfer up to $100,000 from their IRA annually.

Step two:
Choose where you’d like to direct your gift. Gifts of all sizes are welcome. With a gift of $50,000+ you can set up a personal endowment with a designated name and purpose of your choice. We handle all administrative details.

Gifts of any size can be made to an existing fund, including:

  • the Fund for Community Good (supports the greatest community needs)
  • one of our Field of Interest Funds
  • a Nonprofit Endowed Fund benefitting a single organization
  • a Scholarship Fund to create opportunities for students
  • Note: Unfortunately QCD contributions to Donor Advised funds are not permissible at this time.

Things to consider:

The amount withdrawn is excluded from gross income on the Federal return and is also excluded from Michigan income tax. Since there is no charitable deduction involved, the QCD is an incentive even for non-itemizers. Giving a QCD gift during your lifetime gives you the opportunity to see results sooner than if the gift was made through your estate plan.

There are also benefits to giving IRA assets at your passing. IRA assets may be taxed as income to the beneficiary and are also considered when calculating you estate tax liability. When you give your IRA, your heirs are not burdened by the taxes associated with receiving your IRA upon your death. Instead, you can leave them other assets that benefit from more favorable tax treatment.

If you have any questions, we are here to help! Please contact a member of the development team through our website or by calling 616.454.1751.