Are your required minimum IRA withdrawals greater than you need, or care to receive? Would you like to reduce the taxable income from your IRA?
The IRA Qualified Charitable Distribution (QCD) or “charitable rollover” is a terrific way to make a tax-free gift to Grinnell College. Your QCD gift from your IRA of up to $111,000 in 2026 (the limit is adjusted annually for inflation) can satisfy your Required Minimum Distribution (RMD) from your IRA without increasing your income taxes. Although you don’t get an income tax charitable deduction for your QCD gift, you don’t pay taxes on your QCD withdrawal. In effect, the IRA “charitable rollover” is a tax-free way to make a gift.
If you are 70½ or older you can tell your IRA administrator to transfer your gift directly from your traditional IRA or Roth IRA account to Grinnell.
Consider these important requirements to make an IRA charitable rollover:
- You must be age 70½ or older when the gift is made
- The gift must come from a traditional IRA or Roth IRA account; 401(k), 403(b), SEP IRA accounts, and other retirement accounts do not qualify
- The gift must come directly from your IRA administrator to Grinnell
- Total IRA charitable rollover gifts in any one year cannot exceed $111,000 in 2026 (this limit is adjusted annually for inflation)
- The IRA rollover gift can count toward your Required Minimum Distribution (RMD) for your IRA if you have not already taken your RMD for the year you make your gift
- The gift from your IRA will not be available as an income tax charitable deduction but will be excluded from income
We can provide example letters of instruction to send to your IRA administrator to make an IRA charitable rollover. Many administrators require you to use their QCD distribution form. Follow your financial institution’s forms and procedures to ensure you receive the tax benefits of a QCD.