Donations from your IRA's Required Minimum Distributions (RMD)

Over age 73? A simple way to help Cavaliers & reduce your taxes!

Did you know that if you’re age 73 or older and have a traditional IRA, you must to take Required Minimum Distributions (RMD’s) which count as “income?” But you can make a tax-free donation directly to a from your IRA to a qualified charity like the ACKCSC Health Alliance using what’s called a Qualified Charitable Distribution (QCD) that will count towards your RMD but will not count as income? 

Required beginning date for your first RMD for IRAs:  April 1 of the year following the calendar year in which you reach age 73.

The amount donated via QCD is excluded from your taxable income, unlike a regular IRA distribution.

The process is surprisingly simple: just contact your IRA custodian (Vanguard, Fidelity, etc.) and request that a check be sent directly to the ACKCSC Health Alliance. Because we are a registered 501(c)(3) organization with the IRS, as long as the funds go straight from your IRA to our organization, you’re set. It’s a powerful way to support  Cavalier Health, Longevity and Education while potentially lowering your tax bill.

How to Report the QCD on Your Tax Return

When you file your federal income tax return, you must report the QCD amount so it is excluded from your taxable income. You’ll simply take the 1099 Form your IRA provides to you follow the easy instructions below. You’ll also receive a written acknowledgment from us confirming the date and amount of the contribution.

  1. Report the Gross (Total) Distributions taken for the year from Form 1099-R, Box 1, on Form 1040, Line 4a (for IRAs).
  2. Report the Taxable Amount: On Form 1040, Line 4b, enter the taxable amount, which will be the gross distribution minus the QCD (qualified charitable distribution) amount you made to the ACKCSC Health Alliance. If the entire distribution was a QCD, the taxable amount will be $0.
  3. Write “QCD”: You must write the letters “QCD” next to Line 4b to inform the IRS that the difference in amounts is due to a qualified charitable distribution.

     You’ll keep the following for your records, but don’t need to attach either to your return:

  • The Form 1099-R from your IRA custodian.
  • The written acknowledgment from the ACKCSC Health Alliance (a 501(c)(3) organization) confirming the date and amount of the contribution.  

Donating via your IRA is a Tax-Smart way to help!

Why Use A QCD
from your IRA?

💡 Reduces taxable income without requiring itemized deductions.

💡Lowers Adjusted Gross Income (AGI), which can reduce Medicare
premiums and taxation of Social Security benefits.

💡Supports causes you care about like the ACKCSC Health Alliance, while meeting IRS withdrawal rules.