How quickly time passes, and how quickly the years go by. You have been a good steward and good saver, contributing to your IRA (Individual Retirement Account) over the years.

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Contributing from your IRA to Holy Cross Preparatory Academy - an IRA Qualified Charitable Distribution - is an easy way to reduce your tax burden and make a significant gift to support causes you care about.​

 

In retirement, a Required Minimum Distribution (RMD) from your IRA must commence at age 73, and each year whether you need the funds or not. And you pay income tax on every distribution you take. You can utilize part of your RMD to direct a gift to benefit the causes of your choice.

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BUT YOU CAN BEGIN AN IRA QUALIFIED CHARITABLE DISTRIBUTION AT AGE 70 1/2!

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WHAT IS A QUALIFIED CHARITABLE DISTRIBUTION (QCD)?

 

A Qualified Charitable Distribution is a distribution of taxable assets from a Traditional or Beneficiary Roth IRA paid to a qualified charity that is 100% tax-free for the IRA owner. The Consolidated Appropriations Act made the QCD provisions permanent within calendar year 2017 and going forward.

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QUALIFIED CHARITABLE DISTRIBUTION RULES

 

For eligible tax years, individuals age 70 1⁄2 or over could exclude up to $100,000 from gross income for donations paid directly to a qualified charity from their IRA. QCDs can start as early as 70½ (account owner's 70½ birthday) even though minimum distributions aren't required until age 73 . 

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For the QCD to satisfy the current year, the distribution must be completed by December 31st. Holy Cross Preparatory Academy is a registered 501(c)3 charitable organization, and qualifies to receive QCD gifts from IRAs. Please reference our TAX ID #: 82-3889986.

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​Additional information about QCDs can be found on the IRS Qualified Charitable Distributions webpage. Please consult with a qualified tax advisor about QCDs, as Holy Cross Preparatory Academy does not provide tax or legal advice.