IRA Charitable Rollover

You may exclude from your taxable income up to $100,000 of IRA Charitable Rollovers to a Single Charity Fund or multiple Single Charity Funds at the PCA Foundation. Your spouse also may exclude up to $100,000 of IRA Charitable Rollovers. An IRA Charitable Rollover is called a “Qualified Charitable Distribution” (QCD) in the tax code. A QCD is a distribution from a traditional IRA (account or annuity) made directly to a qualified charity after the IRA owner has reached age 70 ½. (You may direct a QCD from a Roth IRA, but likely to no tax advantage, or from a SEP or SIMPLE IRA that is not “ongoing.” QCDs may not come from a 401(k) plan or 403(b) tax sheltered annuity, but may come from IRAs that have received rollovers from such plans or TSAs. Please consult your tax advisor.)

An exclusion from taxable income that you would otherwise have to recognize due to the required minimum distribution (RMD) rules produces essentially the same tax benefit as a charitable contribution deduction. In fact, it is more beneficial than a charitable contribution when you do not itemize your charitable-contribution deductions because the standard deduction is higher. In that case, you get the exclusion in addition to the standard deduction. The exclusion from taxable income due to a QCD may also reduce income tax on Social Security benefits and surcharges on Medicare premiums – again, consult your tax advisor.

Notably, you may not direct a QCD to a donor-advised fund such as the PCA Foundation’s Advise & Consult Fund or Increase Fund, but you may direct a QCD to a PCAF Single Charity Fund, or allocate a QCD among multiple Single Charity Funds (which are not deemed donor-advised funds under the tax code).

You may recommend grants from a Single Charity Fund in any amounts and over any period of time you desire, but only to the charity identified as the beneficiary of the fund at the time you direct the QCD to it. You also may choose from a number of options for investing the fund.