Support REACH through your IRA

For more information, you may contact our Executive Director, Dan Stoehr, at 253-383-7616
or dstoehr@REACHministries.org.

If you are 70 ½ or older:

You must take required minimum distributions from your IRA(s) each year. The amount is calculated using tables published by the IRS.

When planning your IRA withdrawal strategy, you might consider making charitable donations to REACH through a Qualified Charitable Distribution (QCD), popularly known as the IRA charitable rollover.

These distributions are usually considered ordinary income and taxed as such, unless you make a QCD.

Qualified Charitable Distributions:

  • The donor must be 70 ½ or older.
  • The gift must be made directly from the IRA to a qualified 501(c)(3) charity, which REACH is.
  • Individuals 70 ½ and older may offset all or part of their annual required minimum distributions by making a QCD.
  • $100,000 is the maximum QCD amount that can be paid to any charity or combination of charities each year.

Advantages:

  • This is a quick and easy way to make a gift to your favorite charity or charities from one of your major assets.
  • This satisfies all or part of your annual mandatory distribution requirement at age 70 ½ and older.
  • The QCD is excluded from income so no federal tax is paid on that amount, and it also avoids the possibility that you could be moved into a higher tax bracket.

How to make a Qualified Charitable Distribution to REACH:

  • You direct the administrator of your IRA(s) to make the charitable distribution(s) directly from your IRA(s) to REACH. You may download this sample letter to your IRA administrator: IRA-sample-letter.  REACH’s tax ID number is 91-1644321.
  • It must be received by REACH by December 31st of the tax year. Note: in the first year you reach 70 ½, your IRA distributions must be made within six months of your birthday.
  • For you to avoid paying federal income tax on the amount of the distribution, it must go directly to the charity. If the distribution is made to you as the owner of the IRA, even if you then send it to REACH, it becomes a taxable event.
  • Note: a QCD is a gift to a qualified charity, which is not included in your taxable income; no charitable deduction is allowed on a federal tax return.

For more information, you may contact our Executive Director, Dan Stoehr, at 253-383-7616
or dstoehr@REACHministries.org.