Qualified Charitable Distribution

Only IRAs are eligible for qualified charitable distributions. If you have money in a 401(k) or other non-IRA plans, the assets must first be rolled to an IRA to be eligible for a qualified charitable distribution. Ongoing SEP or SIMPLE IRAs are not eligible for qualified charitable distributions. A plan is ongoing if a contribution is made to it for the taxable year of the qualified charitable distribution.

You cannot take a qualified charitable distribution until you turn 70 1/2.

You cannot take active receipt of the money. If you want to personally mail the check to the charity, request the payee of the check to be the charity, but have the check mailed to your home or office so you can present it to the charity personally.

Only distributions made to a qualified 501(c)(3) organization, like Haven Community Church, can qualify as a qualified charitable distribution. Distributions to a donor-advised fund, supporting organization, private foundation, charitable remainder trust, charitable gift annuity, and pooled income funds do not qualify.

Because there is no special process or reporting of a qualified charitable distribution on IRS Form 1099R, it is important that your tax advisor is made aware that the distribution is a qualified charitable distribution so it is properly reported on your tax return. The instructions for IRS Form 1040 include information on reporting qualified charitable distributions.

We recommend you meet with your tax advisor as well as your financial advisor to learn more about qualified charitable distributions.