IRA/Charitable Distributions

If you are at least 70½ years old, you are eligible to make a Qualified Charitable Distribution (QCD) from a traditional or Roth IRA. Distributions to WBL will be excluded from federal income.

You must designate WBL, tax ID #51-041-0145.

How do I make a qualified charitable distribution in 2022?

You must be at least 70½ years old on the date of the distribution to WBL.

Distributions must be made from an IRA, including inactive SEP and SIMPLE plans. Distributions from any other type of retirement plan (401(k), 403(b), 457, Keogh, and active SEP and SIMPLE plans) will not qualify.

QCD distributions are limited to $100,000 in total during each year.

A distribution must be made outright to WBL—it cannot be used to fund a charitable remainder trust, gift annuity, donor-advised fund, or family foundation.

Your plan administrator must transfer the funds directly—you may not receive the distribution first and then transfer it to WBL.

The distribution must be received by the WBL on or before December 31, 2022, to be counted in the 2022 tax year. Each distribution will be excluded from federal taxable income.

Because the QCD distribution is not taxable income, you cannot claim a deduction for federal tax purposes. Some states may treat distributions as income followed by a deduction. Please check with your tax advisor to learn more.

Note that QCDs typically count toward your required minimum distribution (RMD) if you are required to take one. Using a QCD to make charitable gifts will reduce the value of your IRA and taxable RMDs in future years.

Sample letter to your IRA administrator

Click here to see a sample letter to direct your IRA plan administrator to make a distribution from your IRA account to WBL. Then, please notify WBL to expect the QCD from your IRA and specify how you want your gift to be used.