For individuals age 70 ½ or older, an IRA Qualified Charitable Distribution (QCD) is a great way to make a tax-free gift to Partners In Health, satisfy your Required Minimum Distribution (RMD), and continue to sustain PIH’s work throughout retirement.
What are the benefits of a QCD gift?
- Transfer tax-free gifts from your IRA to Partners In Health.
- Under current law, every IRA account holder must withdraw a RMD annually beginning at age 73. The RMD is treated as ordinary income for tax purposes. A QCD counts toward your RMD without increasing your taxable income.
- If you don’t itemize deductions and are not yet required to take your RMD, a QCD offers all of the benefits of an itemized income tax charitable deduction.
- IRA gifts may be used to satisfy multiyear gift pledges.
How Do I Qualify?
- You must be 70 ½ years or older at the time of the gift.
- Gifts must come from a traditional IRA or Roth IRA.
- Gifts must go directly from your IRA to Partners In Health. If you deposit your RMD and write a personal check, it will increase your taxable income.
How can I make a QCD and know PIH received it?
- Use our online tool today to create a QCD. It only takes a couple of minutes to complete and PIH will be notified about your gift. You can also print out the forms you need and complete your gift offline. This tool works with all major IRA custodians.
- Ask your custodian if they will facilitate a QCD bank transfer. If they will, email giftadmin@pih.org and request instructions for a gift by ACH transfer.
- If you initiate your QCD by physical check directly with your custodian, please request that the check is made out to “Partners In Health” and that you are identified as the donor in the memo line or cover. Please QCD checks to: Partners In Health PO Box 996 Frederick, MD 21705-9942 and complete our QCD Notification Form found here: pih.org/IRA_QCD
Note: PIH's tax identification number (EIN) is 04-3567502.
Make your QCD as early as feasible. It is important to allow sufficient time for your check to clear, ensure the funds are withdrawn during your preferred tax year, and avoid up to a 50% tax penalty for not taking an RMD.
Are there restrictions on QCDs?
- In 2024, the withdrawal may not exceed $105,000 annually per individual. A married couple with separate IRAs may each transfer $105,000 annually.
- Non-IRA qualified retirement plans, like 401k and 403b plans, are not eligible for making a QCD.
- A QCD is only eligible for outright donations and cannot be given to a donor advised fund, supporting organization, or private foundation. A QCD can not be given in exchange for benefits such as tickets to an event.
How do I use my check-writing privileges to transfer funds from my IRA to PIH?
Some custodians offer check-writing privileges to allow you to make a gift directly. If you wish to make a gift with a check from your IRA account, please make it out to “Partners In Health” and mail it to: Partners In Health PO Box 996 Frederick, MD 21705-9942
For more information about this gift or other ways to support PIH through retirement, please contact the Gift Planning team:
857-880-5717
giftplanning@pih.org
“We really want to do something to help the most vulnerable people get a break.
I don’t need this money. I don’t need to pay taxes on it. Why not use the distribution for philanthropy?”
– PIH supporter