Qualified Charitable Distribution (IRA Charitable Rollover)
Use Your Traditional IRA to Make a "Tax-Free" Gift to the American Cancer Society.
Tools you will need
What is the procedure to execute an IRA Charitable Rollover? It is simple!
- Alert Plan Administrator Sample Letter
- Alert the American Cancer Society Sample Letter
The Qualified Charitable Distribution (QCD) is an excellent way to show your support for the American Cancer Society and receive tax benefits in return. As you plan your required minimum distributions (RMD), consider using your IRA account to make the most of your charitable giving. You receive a tax benefit even if you take the standard deduction!
It's important to consider your tax situation before deciding whether to make a charitable contribution from your IRA. Be sure to share this gift plan with your financial advisor.
To qualify
- You must be 70½ or older at the time of gift.
- Distributions must be made directly from a traditional IRA account by your IRA administrator to the American Cancer Society.
- Gifts must be outright, meaning they go directly to the American Cancer Society. Distributions to donor-advised funds do not qualify.
- Gifts from 401(k), 403(b), and other employer plans don’t qualify. SEP and SIMPLE IRAs qualify only if they’re inactive (no current employer contributions). If your SEP/SIMPLE is still active, ask your advisor about rolling to a traditional IRA before making a QCD.
Tax Benefits
- IRA Qualified Charitable Distributions are excluded as gross income for federal income tax purposes on your IRS Form 1040.
- The gift counts toward your required minimum distribution for the year in which you made the gift.
- You could avoid a higher tax bracket that might otherwise result from adding an RMD to your income.
QCDs may be made beginning at age 70½, while RMDs start at age 73. In 2026, individuals may contribute up to $111,000 per year from an IRA through QCDs. Those between ages 70½ and 73 may use QCDs even before RMDs begin, potentially reducing future taxable distributions. In addition, a one-time QCD of up to $55,000 may be used to fund certain life-income gifts, such as a charitable gift annuity.
Example:
John is 73—an age when many taxpayers begin required minimum distributions (RMDs)—and wants to give $20,000 to the American Cancer Society. He has a little over $500,000 in his IRA, and his RMD for the year is approximately $20,000. Instead of taking the distribution himself and paying income tax on it, John can instruct his IRA administrator to transfer $20,000 directly to the American Cancer Society through a qualified charitable distribution (QCD). Although he will not receive a charitable income-tax deduction, the full $20,000 is excluded from his taxable income. The gift also satisfies his RMD for the year—without triggering income tax.
To learn how these options may apply to your situation, please contact us.
Questions and Answers
What's the IRS Rule?For more information, please contact us by phone at 800-227-1885.
Important Notes:
If your administrator provides you an IRA checkbook, please note that the date of your QCD is NOT the date you send the distribution check, but the date that your IRA administrator transfers the funds to the charity. If you want your distribution check to be credited toward the current tax year, it is critical that you mail your check several weeks before the end of the year to ensure there is time for the check to be received by common reporting standards (CRS) and to clear your account. This is especially true if you are relying on those gifts to fulfill your required minimum distribution.
Qualified Charitable Distribution Checks
Make checks payable to:
American Cancer Society
P.O. Box 6704
Hagerstown, MD 21741
Please Note: Include your name and address with the check so we can correctly credit and acknowledge your gift.
Documentation
There are several ways to send a gift from a qualified retirement account to the American Cancer Society. Once you've decided how you want the check sent to us, follow the appropriate procedure below.
If you are requesting that your IRA administrator send a check directly to the American Cancer Society:
- Notify your plan administrator, preferably in writing, that the documentation accompanying the check must include your name and address. You can use our sample letter to make your request.
If you have check-writing capability on your IRA account:
- If your name and address are not printed on your check, include that information along with your check.
If your IRA administrator is sending the check directly to you, the check must be payable to the American Cancer Society:
- Make a copy of the check for yourself. Send the original check, and include your name and address, to the American Cancer Society.
An important note: No matter how your check is sent to the American Cancer Society, we need your name and address to accompany the check in order to correctly credit and acknowledge your gift.
Questions? Please contact us by phone at 800-227-1885. We are here to help.
Be sure to check with your financial advisor to determine whether this gift plan is right for you. This information is not meant as tax or legal advice.
