IRA Qualified Charitable Distributions

What is a Qualified Charitable Distribution (QCD)?

QCDs, otherwise known as IRA charitable rollovers or IRA gifts, are a great way for those over 70 ½ to support our critical work and maximize your charitable impact. QCDs may be excluded from your taxable income and qualify towards your required minimum distribution (RMD).

A QCD is a distribution of funds from your IRA (other than a SEP or SIMPLE IRA) directly to a qualified charitable organization, such as the PSR-LA. Because the gift goes directly to the charity without passing through your hands, the dollar amount of the gift may be excluded from your taxable income up to a maximum of $100,000 annually, with some exceptions.

Basic requirements and limitations for a Qualified Charitable Distribution

  • The donor must be at least 70½ years of age at the time of the distribution.
  • The distribution must be from a Roth or Traditional IRA.
  • The distribution must be made directly from the IRA administrator to a qualifying charity such as PSR-LA (gifts made to a donor-advised fund, supporting organization, or private foundation do not qualify).
  • QCDs are limited to $100,000.00 per individual per year. Gifts must be made by December 31 of each year.
  • If you are a joint tax filer, your spouse can also give $100,000 per year if he or she is over 70 ½ and has an IRA.
  • Please note that certain states may not exclude gift amounts withdrawn from an IRA for state income tax purposes.

For more information on QCDs, please visit the IRS website.

How to make an IRA Qualified Charitable Distribution to PSR-LA

To make a gift from your IRA to the PSR-LA, contact your IRA administrator to arrange a direct transfer from your account. You may download a sample letter to your IRA administrator here. Your IRA administrator can send the funds by a check made payable to PSR-LA and mailed to:

Physicians for Social Responsibility – Los Angeles
617 S. Olive St. Suite 1100
Los Angeles, CA 90014

Please note that if the check is made payable to you and you deposit it into your bank account and then write a personal check for the gift, the distribution will not qualify as a charitable distribution and will be included in your taxable income.

PSR-LA does not provide tax or legal advice. Please consult your own professional tax or legal advisor before making any charitable gift decision based on this information.