Office of Gift Planning — Wills, Trusts, & Estates

How to Make a Qualified Charitable Distribution from Your IRA

If you are at least 70½ years old, you are eligible to make a Qualified Charitable Distribution (QCD) from a traditional or Roth IRA. A QCD can provide a more tax-efficient way for you to make your 2018 charitable contributions.

Know the details

  • You must be at least 70½ years old on the date of the distribution to charity.
  • Distributions may be made only from an IRA, including SEP (inactive plans only) and SIMPLE (inactive plans only). Distributions from any other type of retirement plan (401(k), 403(b), 457, Keogh, etc.) will not qualify.
  • QCD distributions are limited to $100,000 in total during each year.
  • Each distribution will count toward your required minimum distribution (RMD) but will be excluded from federal taxable income. A distribution will not increase taxable income and may eliminate the negative impact of “high income” tax penalties. Because the QCD distribution is not taxable income, you cannot claim a deduction for federal tax purposes. Some states may treat distributions as income followed by a deduction. Please check with your tax advisor to learn more.
  • A distribution must be made outright to a qualified public charity – it cannot be used to fund a charitable remainder trust, gift annuity, donor advised fund, or family foundation.
  • Your plan administrator must transfer the funds directly – you may not receive the distribution first and then transfer it to the charity.
  • The distribution must be received by the charity on or before December 31, 2018 to be counted in the 2018 tax year.

For a more complete description of the IRS regulations, please see the most recent version of Publication 590-B, Distributions from Individual Retirement Arrangements (IRAs) at https://www.irs.gov/publications.

QCD Donor Toolkit

The QCD Toolkit includes two sample letters you can download to help you make a QCD gift to the University of Virginia and/or any of its schools and programs.

Letter 1 directs your IRA plan administrator to make a distribution from your IRA account to the University. Please note that you must include a federal tax ID number with your distribution request.

Letter 2 notifies the University to expect the QCD from your IRA and specifies how you want your gift to be used.

Support your passion!

You may contribute your QCD gift to the University or any of its schools, units, programs, or related foundations. For a distribution to the University, please designate The Rector & Visitors of the University of Virginia, tax ID #54-6001796. For a distribution to a University-related foundation, please insert the name and tax ID in the sample letter where indicated. We will be happy to provide you with that information on request.

You may further designate your gift for either unrestricted or restricted use by the recipient. If you wish to restrict your QCD to support a particular program or priority, we recommend you contact us first to review your intended provisions so we can be certain we can carry out your wishes.

You may choose two or more beneficiaries by assigning a percentage of your total gift to each.

Please contact the Office of Gift Planning with any questions (434-924-7306, 800-688-9882, or giftplanning@virginia.edu).

Thank you for your generosity!

Download sample letter to IRA Plan Administrator
Download sample letter to notify UVA
sample-letter-to-plan-administrator notify-uva

 


 

UVA Federal Tax ID Numbers

Contact the Office of Gift Planning for assistance and clarification.