IRA Rollover and Qualified Charitable Distributions

IRA Charitable Rollover

Donating part or all unused retirement assets is an excellent way to make a gift to support parish offertory, an endowment, a Parish/Ministry Life Fund, or a Catholic school scholarship program… all at the same time! By “rolling” the distribution from an individual retirement account (IRA), directly to a charity, donors can make a gift to further the work and mission of our Church while possibly receiving a tax benefit.

Click here to see a list of beneficiaries that the Catholic Foundation serves.

Click here to see existing funds that you can donate to.

Please note: It is vital for donors considering this option to speak with their tax advisers and financial advisers.

While there has been a lot of talk about the SECURE Act, voted into effect in December 20, 2019, it is important to know anyone can still make a qualified charitable distribution from their retirement account, no matter their age.

Benefits

• Individuals 70 ½ years of age and older as of January 1, 2020, are still able to make qualified charitable distributions that can count toward the required minimum distribution (RMD). This will keep the RMD from being included in adjusted gross income for tax purposes, which can be a benefit for some even if they do not itemize deductions.
• For all others, the age to make a qualified charitable distribution that counts toward the required minimum distribution was increased to age 72.
• For those planning on leaving their IRA to their children in their estate, the SECURE Act put a cap on the amount of time they have to access and use the funds at 10 years. Therefore, depending on their ages, donors may want to consider leaving heirs assets that receive a step up in basis, such as insurance plans, real estate and stock, and utilize the retirement assets for charitable giving.

Details

All stock, IRA, and matching gift donations are processed through the Campaign Processing Office of the Diocese of St. Petersburg, and will be credited directly to the Foundation fund indicated by the donor in accordance with the donors’ wishes. To initiate a donation from an IRA, the steps are:

1. Contact the IRA plan administrator.
2. Provide the IRA plan administrator with the following information:
   • the Tax ID number of the Catholic Foundation (59-3519543) and mailing address the gift should be sent to (The Catholic Foundation-Diocese of St. Petersburg, Campaign Processing, PO Box 40200, St. Petersburg, FL 33743-0200)
   • the total amount to contribute
   • gift allocation. One distribution can be used to support multiple diocesan entities and ministries. For example, a total qualified charitable distribution of $10,000 can be split as follows: $1,000 for the offertory of “Parish Name”; $5,000 for the Catholic Foundation Parish Life Fund for “Parish Name”; $2,500 for the Catholic Foundation Ministry Life Fund for Seminarian Education and Formation; $1,500 for the endowment for Hillsborough Hope operated by Catholic Charities, DOSP.
3. Verify the IRA plan administrator will include donor name on the check/stub being sent.
4. Notify the Campaign Processing Office a gift was initiated a gift from an IRA, the amount of the gift, the name of the company the IRA is held with and include how gift allocation. Notification can be sent by email to stock-iradonations@dosp.org, or by mail to Diocese of St. Petersburg, Campaign Processing, PO Box 40200, St. Petersburg, FL 33743-0200.
5. IRA funds will be directly transferred to the Catholic Foundation to support the work of the designated parishes and ministries. Once the payment is received, an acknowledgement letter will be sent with a copy going to the entities receiving funds.

Please contact us if you have any questions about an IRA charitable rollover gift. We would be happy to assist you and answer any questions you might have.

Qualified Charitable Distributions

What is a Qualified Charitable Distribution?

A Qualified Charitable Distribution (QCD) is a federally non-taxable distribution of funds from a Traditional Individual Retirement Account (IRA) to a qualified charity. A qualified charity is a 501 (c)(3) organization that is eligible to receive tax-deductible charitable contributions. The Catholic Foundation and the Diocese of Saint Petersburg are both qualified charities, and the Catholic Foundation and can accept QCDs for your chosen beneficiary within the Diocese. Please see a list of beneficiaries here.

What are the Advantages of a QCD?

A QCD that can count toward the Required Minimum Distribution (RMD) of a Traditional IRA will prevent the RMD from being included in the donor’s adjusted gross income (AGI) and thereby prevent the possibility of raising the donor’s (AGI) to a higher tax bracket. It also prevents a higher (AGI) from causing a higher Income Related Monthly Adjustment deduction from the donor’s social security payments.

Who can make a QCD?

Donors who were 70 ½ years old or older on January 1, 2020 may make QCDs that can count toward the RMD from a Traditional IRA. An individual also has the option to make a QCD before RMDs begin. The maximum annual exclusion amount for a 2025 QCD is $108,000.00 per individual. The aggregate amount of deductible IRA contributions you make after you turn 70 ½ to your IRA will reduce the amount of a QCD that can be excluded from your gross income.

During your lifetime, you are allowed to make a one-time election to distribute $50,000 to charities through Charitable Gift Annuities with the Catholic Foundation. Rules for making such donations are available on the internet and from financial advisors.

Eligible for a QCD:	NOT Eligible for a QCD:
Traditional IRA	Employer-sponsored retirement plan account
Rollover IRA	Non-retirement accounts
Inherited IRA (excluding those owned by a trust or estate)
Inactive SIMPLE IRAs/SEP-IRAs that no longer receive employer contributions

How can I make a QCD to support the work of my parish, school, or ministry in the Diocese of Saint Petersburg?

The donor must make sure that there is enough cash in his or her Traditional IRA to cover the amount of the QCD and the financial institution that holds the IRA must issue a check to the “Catholic Foundation, Diocese of St. Petersburg.”

Financial Institutions have the forms required to request an QCD for a charity and those forms can be completed online or by meeting with a representative of the financial institution by appointment. The donor may then ask the representative to mail the check directly to the charity or to the donor so that he or she can make a copy of the check as proof that the check was made payable to the charity if the IRA should require proof.  The donor may then hand-deliver or mail the check to the Diocese of Saint Petersburg.

All RMD’s must be made by December 31 of the current tax year and should therefore be requested by the financial institution that holds the IRA no later than November 15 of the current tax year.