Donating IRA Distributions to Spirit of Martyrdom International

Qualified Charitable Distributions (QCDs) have been permanently extended. Individuals can donate up to $100,000 per year directly from traditional or Roth IRAs to qualifying charities. This is attractive to some investors because QCDs can be used to satisfy minimum required distributions from an IRA without having the distribution included in their income.

Eligibility

A qualified charitable distribution may be made:

• When the IRA holder is 70 1/2 or older
• Directly from an IRA to a qualified charity
• From a traditional or Roth IRA

This is not financial or tax advice. Please consult your advisor for guidance on your personal situation.

Restrictions on QCDs

• $100,000 maximum per person per year.
• Distribution transferred to the charity no later than December 31 of the current year.
• Must be a direct IRA distribution from the custodian or trustee to SOM International.
• Applicable only for traditional and Roth IRA distributions.

Key Benefits

• For those who give larger gifts – Deductibility limits do not apply to QCDs, which means the QCS can be made in addition to other charitable contributions that may be limited.
• For those who don’t itemize deductions – If QCDs are used as the funding source for charitable donations, the donor will receive tax benefits.
• For those who pay taxes on a portion of their Social Security benefits – Income for determining the taxation of Social Security benefits is lower.
• For those whose income level subjects them to tax on net investment income, or phase-out of personal exemptions or itemized deductions – A QCD made in lieu of an RMD will result in lower adjusted gross income for the IRA holder, which may lessen the effect of this tax or applicable phase-outs.