Gifts from Retirement Accounts
What is a Qualified Charitable Distribution (QCD)
Usually, when individuals take distributions from their Individual Retirement Accounts (IRAs), it counts as income for tax purposes. An IRA charitable rollover also called a Qualified Charitable Distribution (QCD) is an exception. Individuals aged 70.5 and older can distribute up to $100,000 each year from their IRAs to their favorite 501(c)(3) without counting the distribution as income or RMD. QCD is limited to IRAs only. If you want to donate from your 401k or other retirement accounts of different types, you will need to rollover funds to an IRA first to be qualified. The IRS provides additional useful information on Qualified Charitable Distributions here.
Each State May Operate Differently
QCD is a federal law. It will be honored by IRS and be excluded from your federal tax income. Yet, each state operates independently. Not all states conform to federal law with respect to QCDs. Please check the state laws for state taxes.
How to Give Qualified Charitable Distributions (QCD)
Write an instruction letter or contact your IRA administering company to fill out the QCD form with Foundation information, including EIN# 83-0689060. The check should be payable to
National Tsing Hua University North America Foundation Inc
777 Alexander Road, suite 102
Princeton, New Jersey, 08540
EIN# 83-0689060
Then fill out the Foundation's Check Donation Form to provide the donor information and distribution preferences.
A Sample Instruction Letter to IRA administering company:
Dear Sir or Madam:
Please accept this letter as my request to make a direct charitable distribution from my Individual Retirement Account # [Account Number].
Please send me the appropriate forms to issue a check or wire transfer from my IRA account in the amount of $___________ payable to National Tsing Hua University North America Foundation Inc , (tax identification number EIN# 83-0689060), as follows:
Please mail the check to:
National Tsing Hua University North America Foundation Inc
777 Alexander Road, suite 102
Princeton, New Jersey, 08540
EIN# 83-0689060
In your transmittal to National Tsing Hua University North America Foundation Inc, please reference my name and address as the donor of record in connection with this transfer, and copy me on your transmittal.
If you have any questions or need to contact me, I can be reached at (telephone).
Thank you for your assistance in this matter.
Sincerely,
Name the Foundation as a Beneficiary to Receive Your Retirement Assets
Retirement plans are among the most highly taxed assets in an estate: 50% or more of the assets can be lost to estate and income taxes.
When you name a charity as a beneficiary to receive your retirement assets upon your death, rather than donating retirement assets during your lifetime, the benefits can multiply:
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Neither you and your heirs nor your estate will pay income taxes on the distribution of the assets.
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Your estate will need to include the value of the assets as part of the gross estate but will receive a tax deduction for the charitable contribution, which can be used to offset the estate taxes.
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Because charities do not pay income tax, the full amount of your retirement account will directly benefit the charity of your choice.
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It’s possible to divide your retirement assets between charities and heirs according to any percentage you choose.
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You have the opportunity to support a cause you care about as part of your legacy.
Information needed for beneficiaries information:
EIN# 83-0689060
National Tsing Hua University North America Foundation Inc
777 Alexander Road, suite 102
Princeton, New Jersey, 08540
Questions?
Please e-mail treasury@nthu-na-foundation.org