Is donating an IRA to charity tax deductible?

Because charities do not pay income taxes on the donations they receive, distributions to charities will avoid being taxed as income. Donating part or all of your unused retirement assets, such as your individual retirement account (IRA), is an excellent way to contribute to the PHJC Foundation.

How does a qualified charitable distribution work, and what qualifies as a charitable IRA rollover?

If you are over age 70½, you may give a gift from your IRA as a tax-free distribution to a qualified charity. This means an amount (up to $100,000 annually) transferred from your IRA directly to the PHJC Foundation can count toward your required minimum distribution without being considered taxable income for you. The deduction then lowers your adjusted gross income (AGI). The distribution, also known as an IRA Charitable Rollover, is authorized by Section 408(d)(8) of the Internal Revenue Code.

As a qualified charitable IRA rollover, the gift must be transferred from a traditional IRA directly to a qualified public charity like the Foundation and must be completed during the applicable tax year.

The Foundation must receive your gift by Dec. 31 for your IRA charitable distribution to qualify for that tax year.

Can the Foundation be the beneficiary of my IRA?

A beneficiary can be any person or entity, such as the Foundation, the owner chooses to receive the benefits of a retirement account or an IRA after the owner’s lifetime. Make your IRA part of your legacy, and learn more about legacy giving to see the special way we honor your generosity.