Your retirement assets can be one of the most impactful ways to support A Home Within, both now and in the future. With thoughtful planning, you can use your IRA or other retirement accounts to make a Qualified Charitable Distribution (QCD) while potentially reducing your tax burden.
Retirement accounts are often among the most heavily taxed assets. Giving from these accounts can be a tax-efficient way to support a young person with foster care experience, while also managing your required minimum distributions from an IRA, if eligible. By making a charitable gift to A Home Within from your retirement account, you can:
If you are age 70½ or older, you may be eligible to make a Qualified Charitable Distribution (QCD) directly from your IRA. A QCD is a direct transfer from your IRA to a qualified nonprofit like A Home Within.
While employer-sponsored plans like 401(k)s do not allow direct QCDs, there are still ways to give. The simplest way is to Roll Over to an IRA to unlock the tax advantages of IRA giving.
You can designate A Home Within as a beneficiary of your retirement account, which allows you to retain full use of your assets during your lifetime, and give back for future generations.
Because retirement giving can involve specific tax rules, we recommend speaking with your financial advisor or tax professional to determine what approach is right for you. For an overview, check out our FAQ below. If you’re considering a gift from your retirement account, please feel free to reach out—we’d be honored to support you in the process: Contact Reed Connell, Executive Director, at rconnell@ahomewithin.org.
A: Individuals must be at least age 70 ½ to make a QCD and the distributions must be made from amounts that would otherwise be taxed as ordinary income. For example, non-deductible contribution amounts would not be eligible for the distribution.
A: Yes. The most an individual can donate in a calendar year, across all charities, is $100,000. If you file taxes jointly, your spouse can donate up to $100,000 from their IRA as well.
A: Eligible retirement accounts include Traditional IRAs, Inherited IRAs, Simple IRAs (inactive only) and SEP IRAs (inactive only).
A: Your tax benefits will vary based on age and assets. While a QCD does not qualify for a charitable income tax deduction, with a reduction in adjusted gross income, it can be the equivalent of a tax deduction, or in some cases, better.
A: Required minimum distributions (RMDs) begin at age 73 or 75 (depending on your birth year). To allocate some or all of an RMD as a QCD, the QCD must be made by the deadline for receiving the RMD, generally December 31 of the applicable tax year.
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