Charitable giving from an IRA 

Over the last few years there has been on and off legislation to approve charitable contributions from an IRA. Finally it appears charitable IRA distributions are here to stay.


There are a few rules that you must adhere to before completing the distribution. This from a fantastic summary by Michael Kitces:charity

  1.  Already be age 70 ½ on the date of distribution
  2. Submit a distribution form to the IRA custodian, requesting that the check be made payable directly to the charity
  3. Ensure that no tax withholding is being done from the QCD to the charity (as the money must actually go to the charity to qualify, and as a non-taxable distribution no withholding should be necessary)
  4. Send the check directly to the charity, or to the IRA owner to be forwarded along to the charity

It would be advisable to not wait until the end of the year to complete this distribution in order to give all parties ample time to complete the transaction.

By completing this transaction in this manner, you will not receive a deduction for the Charitable contribution, however, you will also not be taxed on the amount of the charity directed distribution!

There you have it…. a simple explaination!

Have a Great Day!

John A. Kvale CFA, CFP

Founder of J.K. Financial, Inc.
A Dallas Texas based fee only
Financial Planning Total Wealth
Management firm.

2 responses to “Charitable giving from an IRA 

  1. It’s a slick option as the RMD starts hitting us! Safe travels John

  2. Interesting.

    Sent from my iPhone


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