Qualified Charitable Distributions from your IRA

Eligibility Requirements:

You must be age 70½ or older at the time you make the distribution.
QCDs can only be made from traditional IRAs, inherited IRAs, or inactive SEP and SIMPLE IRAs.
Distributions from employer-sponsored retirement plans (401(k)s, 403(b)s, etc.) do not qualify, but you may be able to roll funds from these plans into an IRA to make a QCD.
The maximum annual amount that can qualify is $100,000 per individual ($200,000 for married couples filing jointly with separate IRAs).
The funds must be transferred directly from your IRA custodian to Hospice of the Northwest Foundation to qualify as a QCD.

Tax Benefits:

QCDs count toward satisfying your Required Minimum Distribution (RMD) for the year.
The amount distributed as a QCD is excluded from your taxable income (unlike regular withdrawals from an IRA).
Because the distribution is not included in your income, you cannot also claim it as a charitable tax deduction on Schedule A.
QCDs may help reduce your Medicare premiums and the taxation of Social Security benefits by lowering your Adjusted Gross Income.
These tax benefits apply even if you take the standard deduction rather than itemizing.

Process and Documentation:

You must request the distribution directly from your IRA custodian or administrator.
Specifically request that the check be made payable to “Hospice of the Northwest Foundation” (not to you).
Instruct your IRA custodian to include your name on the check memo or in accompanying correspondence.
The IRA custodian may not specifically identify the distribution as a QCD on your 1099-R form, so you’ll need to track the donation for tax reporting.
We will provide you with an acknowledgment letter confirming receipt of your gift, but it’s your responsibility to maintain records showing that your gift met all IRS requirements for a QCD.

Timing Considerations:

QCDs must be completed by December 31 to count for the current tax year.
Allow extra time for your IRA administrator to process your request, especially during the busy year-end giving season.
If you’re 73 or older (or 75+ after 2033), consider making QCDs early in the calendar year to ensure they count toward your RMD.

Getting Started:

We recommend consulting with your financial advisor or tax professional before initiating a QCD.
Hospice of the Northwest Foundation can provide general information but cannot offer legal or tax advice specific to your situation.
For assistance with making a QCD, please contact us at (360) 814-5702 or foundation@hospicenw.org.

This information is provided for educational purposes only and is not intended as legal, tax, or financial advice. Please consult with qualified professional advisors regarding all financial, tax, and legal matters.