Articles Tax-Smart Advice for Making Qualified Charitable Distributions

Are You Age 70 1/2 (or older)?

Discover how you can support the Jewish Educational Loan Fund (JELF) through Qualified Charitable Distributions (QCDs) from your Individual Retirement Account (IRA), a tax-advantaged way to contribute to an organization that provides interest-free loans to Jewish students in need.

Key Benefits of a QCD

1. Tax-Free Donations: QCDs are not taxable.
2. Lower Adjusted Gross Income: Helps reduce Medicare surcharges.
3. Counts Toward Required Minimum Distributions (RMDs): Ensure you do the QCD before taking your full RMD for the year.

Important Details:

• Transfer Limit: For 2025, you can transfer up to $105,000 directly from your IRA to charity. This cap is per person, not per IRA account.
• Spousal Contributions: Both you and your spouse can each give up to $105,000 if you both have traditional IRAs.
• Direct Transfers: QCDs must go directly from your IRA to the charity.

Additional Rules:

• Qualified Charities: The charity must be a Section 501(c)(3) non-profit organization.
• IRA Custodian Forms: Most IRA custodians require a form to request the charitable payout. They will send a check directly to the charity or to you, made payable to the charity.
• Receipts: Always get a receipt from the charity.

Special Notes:

• SECURE 2.0 Law: You can do a one-time QCD of up to $53,000 through specific charitable trusts or annuities.
• Age Requirement: You must be at least 70 1/2 on the QCD date. If you turn 70 1/2 on November 1, you must wait until that day or later to make the transfer.
• Deductible Contributions: If you have made deductible IRA contributions after 70 1/2, your allowable tax-free QCD amount might be reduced.

We hope you appreciate this information and find it useful. Thank you for your continued support of JELF. Your generosity helps us make a significant impact.

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For more details or assistance, please contact JELF through our form. Someone will get back to you as soon as possible.