IRA Rollover provides taxpayers with a mechanism for transferring their annual Required Minimum Distributions directly to charitable organizations, in order to exclude the distributions from their taxable income while simultaneously supporting the charities of their choice.
In order to qualify, a person must adhere to certain requirements:
Making a distribution is an easy process. Since you cannot make a distribution directly to a charity, your administrator must transfer the money directly to Easterseals. Simply contact your plan administrator and tell them you would like to make a charitable donation from your IRA. Typically, they will supply you with a distribution form for you to fill out and return.
At the end of the year, the administrator will provide you with a Form 1099-R so you can report it on your taxes. The distribution will go on your Form 1040 tax return, where you will report the distribution as a non-taxed QCD. See the Form 1040 instructions and contact your tax professional for additional information.
Questions? Please contact Courtney Smith, Senior VP, Major Gifts & Planned Giving at 603.621.3456 or by email.