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Qualified Charitable Distribution

Tax-deferred invesetment-savings accounts – such as an IRA, 401(k), nad 403(b) accounts – are excellent savings vehicles, but the tax you are allowed to defer does not last indefinitely. Instead, you are forced to take a Required Minimum Distribution (RMD) annually once you reach age 72. This distribution is considered income to you and likely will increase your total income tax liability. 

An excellent alternative would be to donate all or part of your RMD as a Qualified Charitable Distribution (QCD), up to a maximum of $100,000, to the Citizens Research Council of Michigan. Couples filing jointly can contribute up to $200,000 annually.

QCDs can only be made from IRAs, so you may need to roll funds over from a 401(k) to an IRA if you want to make this tax-free contribution.

Benefits of donating making a QCD

Tax Benefits

RMD withdrawals are considered income by the IRS and are subject to income tax. This income may push you into a higher tax bracket, which can adversely impact Social Security payments and Medicare benefits. When your RMD is sent directly to the Citizens Research Council, it is not reported as taxable income so you will not owe any taxes on your QCD.

It’s quick and easy

Donations from your IRA are sent directly to the Citizens Research Council. Simply set up a direct transfer from your retirement account to us.

Step 1 – Contact your financial advisor

Check-in with your financial advisor to determine what makes the most sense for you and how much you should transfer to maximize your tax break. The benefits of charitable contributions from your IRA depend on your income level.

Step 2 – Let us know

If you don’t let us know you are planning on making a QCD, your broker may not share your contact information, and we won’t know who sent us the donation. You can call Eric Lupher (734) 542-8001 or use this form to share your basic information and the date you plan on executing the QCD.

Qualified Charitable Contributions

As it appears on your tax return (first, middle, and last)
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Step 3 – Execute the transfer

Funds must be transferred directly from your IRA to the Research Council to qualify for the tax break so take the steps necessary to have the distribution check payable to the Citizens Research Council. Talk to your IRA custodian about how to make this happen. You will need the following information to execute the transfer successfully:

  • Our address (38777 Six Mile Rd. Suite 208, Livonia, MI 48152)
  • Citizens Research Council’s Tax ID Number (38-1539991)

Thank you for donating to the Citizens Research Council of Michigan. We appreciate your support.

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