Qualified Charitable Distribution – IRA Charitable Distribution

Special opportunity for those 70.5 years old and older

Make a gift tax-free with an IRA. You can make a difference today and save on taxes when you support United Way of the Yampa Valley through your IRA.

You can give any amount (up to a maximum of $108,000 in 2025 and $115,000 in 2026) per year from your IRA directly to a qualified charity such as UWYV without having to pay income taxes on the money. This popular gift option is commonly called the Charitable Distribution, but you may also see it referred to as a qualified charitable distribution (QCD).

If you have questions or are interested in making a charitable contribution, contact your financial advisor.

Why consider this type of giving?

Your gift will be put to use today, allowing you to see the difference your donation is making. Plus, you don’t pay income taxes on the gift. The transfer generates neither taxable income nor a tax deduction, so you benefit even if you don’t itemize your deductions. Since your gift doesn’t count towards income, it can reduce your annual income level. This may help lower your Medicare premiums and decrease the amount of Social Security that is subject to tax. Beginning in the year you turn 72, you can use your gift to satisfy all or part of your required minimum distribution (RMD).

Frequently Asked Questions

No. The legislation requires you to reach age 70.5 by the date you make the gift.

Yes. Direct gifts to a qualified charity can be made only from an IRA. Under certain circumstances, however, you may be able to roll assets from a pensions, profit sharing, 401(k) or 403(b) plan into an IRA and then make the transfer directly from the IRA. Speak with your financial advisor to determine if a rollover to an IRA is available for your plan.

No. You can give any amount under this provision, as long as it is no more than $100,000 per year. If your IRA is valued at more than $100,000, you can transfer a portion of it to fund a charitable gift.

We must receive your gift by December 31 for your donation to qualify this year. If you have check-writing privileges on your IRA, please mail your check by Dec. 18 in order to give us time to process before the end of the year.

If you have a spouse who is 70.5 or older, they can also give any amount up to $100,000 from their IRA.

Yes, it is now permitted to use a qualified charitable distribution to establish a charitable gift annuity or a charitable remainder trust up to $54,000. Learn more here >