Make a charitable donation directly from your IRA? 

Reduces your taxable income and counts as an RMD!  

 

To learn about QCDs and how to make one, read these FAQs: 

What is a QCD?

A Qualified Charitable Distribution (QCD) is made when an IRA owner, who meets certain requirements, directs their IRA administrator to make a distribution on their behalf to support an organization eligible to receive tax-deductible contributions, such as Knox College.

What are the requirements?

The IRA owner must be at least 70½ years old at the time of the distribution, the distribution must go directly to the eligible organization and, finally, the amount of the distribution is limited to $100,000 or less.

What is an RMD?

An RMD is a Required Minimum Distribution.  At age 72, IRA owners are required to take a distribution from their IRA, and that distribution is subject to tax.  While an RMD and a QCD are different, a QCD may be used to satisfy the RMD requirement.

I already took my RMD.  Can I still make a QCD?

Yes!  While a QCD may be used to satisfy an IRA owner’s RMD in a given year, if an RMD was already taken, the IRA owner is still eligible to make a QCD up to $100,000 in the same year.

Will I get a charitable tax deduction for a QCD?

No, the benefit you will receive is better than a tax deduction.  A QCD is removed from the adjusted gross income calculation in the year it was taken.  This means, whether you itemize on your federal tax return or not, you’ll receive a tax benefit for your QCD to Knox College.

If I want to support Knox with a QCD, what’s the first step? 

The first thing to do is to contact your IRA administrator and notify them that you wish to initiate a QCD from your IRA to support Knox College.  If you have not yet taken an RMD for the year, and you wish to have your QCD satisfy your RMD requirements, you will need to inform your IRA administrator of that.

Do I need to inform Knox? 

Yes, it is in your best interest to do so.  Many IRA administrators do not identify the IRA account owner when processing QCDs.  To ensure that Knox can process your QCD when it is received, it is a good idea to notify the college of the name of the IRA administrator, as well as the amount of the QCD, so that the gift may be correctly attributed.

 

For questions, additional information, or to alert Knox of an incoming QCD, contact Mark Wilson, Advancement at 309-341-7784 or wilsonm@knox.edu