Qualified Charitable Distribution
Make check payable to:
Mobile Medical Care, Inc.
12320 Parklawn Drive
Rockville, MD 20852
Attn: Director of Development
EIN: 23-7022588
Overview:
A Qualified Charitable Distribution is a transfer of funds directly from an IRA to a qualifying charity. The transfer process is executed by the financial institution managing the donor’s IRA through a check payable to the selected charity.
Qualified charitable distributions can be an easy way for individuals to support their favorite causes while also getting favorable tax treatment.
For instance, individuals aged 70 1/2 years and above may count QCDs towards their required minimum distributions for the year, lowering their taxable income.
However, some qualifications and rules must be met for the distribution to be considered a QCD.
A QCD’s maximum annual amount is $105,000 in 2024 ($108,000 for 2025) which can be made to one or more IRS-approved charitable organizations. These QCDs must also be outright gifts and must not benefit the giver in any way.
Moreover, only traditional IRAs, inherited IRAs, inactive SEP IRAs, and inactive SIMPLE IRAs are eligible for QCDs. Roth IRAS may technically make QCDs but with fewer tax benefits.
The amount of taxable RMDs left after making a QCD varies depending on each individual’s situation. Thus, interested individuals may consult a tax advisor for more information on how making QCDs affects income tax return filing.
