As those over the age of 70½ know, you are required to take an annual distribution from your IRA or face a stiff penalty. Since you have to take a distribution anyway, you can do it in the most tax advantaged way possible. Rather than using a portion of your required IRA distribution to give donations to the church, you might consider making a Qualified Charitable Distribution (QCD) directly to the church. A QCD is a direct transfer of funds from your IRA custodian, payable to a qualified charity. QCDs can be counted toward satisfying your required minimum distributions (RMDs) for the year, as long as certain rules are met.

In addition to the benefits of giving to charity, a QCD excludes the amount donated from taxable income, which is unlike regular withdrawals from an IRA. Keeping your taxable income lower may reduce the impact to certain tax credits and deductions, including Social Security and Medicare.

To make a contribution, instruct your IRA trustee or custodian to make a transfer from the IRA directly to Sewickley United Methodist Church.

Please reach out to your financial planner or IRA trustee/custodian with questions about the process and how it can benefit both you and SUMC.

Blessings,
Pam Honeychurch
SUMC Treasurer