Donate Your IRA to ACC
Give to A Continuous Charity (ACC) Through Your Individual Retirement Account (IRA)
Consider donating to A Continuous Charity (ACC) through your Individual Retirement Account (IRA). By donating through your IRA, you can provide crucial support for Muslim students pursuing higher education without being burdened by interest-bearing student loans.
Here are the Steps to Follow:
To donate through your IRA, individuals aged 70 ½ or older can contribute up to $100,000 directly to A Continuous Charity, which is considered a qualified charitable distribution and is limited to IRAs. As an eligible charity, IRA account holders can directly donate qualified charitable distributions to A Continuous Charity from their IRA account. After you reach the age of 72 you are required to withdraw from your IRA what is known as “Required Minimum Distributions (RMDs). These minimum withdrawals can be easily and securely donated to A Continuous Charity.
- To Calculate Your RMD Use This Calculator: https://www.schwab.com/ira/
Once you reach age 59½, you can withdraw funds from your Traditional IRA without restrictions or penalties. You can make a penalty-free withdrawal at any time during this period, but if you had contributed pre-tax dollars to your Traditional IRA, remember that your deductible contributions and earnings (including dividends, interest, and capital gains) will be taxed as ordinary income. In other words, you will now owe the taxes that you originally deferred. Remember, ACC is a charity and you will receive a standard tax-dedication for your charitable contribution.
To donate, please follow these steps:
Determine the amount you wish to donate from your IRA account.
Contact your IRA custodian and inform them that you would like to make a qualified charitable distribution (QCD) from your account. Your custodian will guide you through the process and provide you with the necessary forms.
Fill out the required paperwork provided by your IRA custodian, which may include a QCD form and a letter of instruction to the custodian directing the distribution to the charity.
Once the paperwork is completed, your IRA custodian will distribute the funds directly to A Continuous Charity. Please ensure that the distribution is directed to the correct charity.
Keep records of your donation for tax purposes and report the donation on your tax return. A Continuous Charity will provide you with a receipt or acknowledgement letter for your records.
Additionally, gifts cannot be directed to a donor-advised fund, and gifts must be received by the deadline to be counted in the current tax year.