For those of us who are 70 ½ or older, an IRA Qualified Charitable Distribution (QCD) is a great way to make a tax-free gift to PCB, satisfy your Required Minimum Distribution (RMD) should you have one, and continue to sustain PCB’s mission throughout your retirement.

What are benefits of a QCD gift?

• Transfer tax-free gifts from your IRA to PCB.

• Under current law, you must withdraw your RMD annually beginning at age 73. The RMD is treated as ordinary income for tax purposes. A QCD counts toward your RMD without increasing your taxable income.

• If you don’t itemize deductions a QCD offers all the tax benefits of an itemized charitable deduction.

• A QCD is not included in the Modified Adjusted Gross Income (MAGI) that is used to calculate the thresholds which determine how much you pay for Medicare Part B and D coverage. Because having a MAGI that is even $1 over a cost threshold means you pay the full extra amount, you could save a significant amount in Medicare cost by using a QCD for your gift to PCB.
  
  

How do I qualify for a QCD?

• You must be 70 ½ or older at the time of the gift.

• Gifts must come from a traditional IRA.

• Gifts must come directly from your IRA to PCB. If you deposit your IRA distribution and write a personal check to PCB, it will not qualify for a QCD and it will increase your taxable income.
  
  

What you need to know from PCB?

• If you plan on making a direct transfer from your IRA custodian to PCB, you will need to know the PCB bank account information (bank name, account # and routing#). Simply call the office (847-381-0975) or send a confidential email (accounting@pcbarrington.org) and let us know that you are interested in making a QCD and we will contact you with the necessary banking information.
  
  

Tax advantages should never be assumed. Please consult with your tax adviser.