If you are 70½ or older, you can make a tax-free gift to Baystate Health Foundation (BHF) directly from your individual retirement account (IRA). This is called a charitable IRA rollover or qualified charitable distribution (QCD).
The advantages of a QCD
- Tax benefits: A charitable gift transferred from your IRA directly to BHF will not be taxed and can satisfy your required minimum distribution (RMD), maximizing benefits to both you and Baystate Health Foundation.
- Ease: You do not need an attorney to make this gift; simply contact your financial advisor or account administrator.
- Flexibility: You choose what lifesaving program or area of Baystate Health you wish to support.
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 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 Baystate Health Foundation.
- You may give any amount, from your annual gift to a special gift up to $108,000.
- The IRA rollover gift can count toward your Required Minimum Distribution (RMD) if you have not already taken your RMD for the year you make your gift.
- Although you don’t receive an income tax charitable deduction for the gift, you will not pay taxes on your IRA withdrawal. In effect, the IRA charitable rollover is a tax-reducing and tax-free way to make a gift.