IRA Qualified Charitable Distribution (IRA QCD)

Make a Meaningful Gift Through Your IRA

With an IRA Qualified Charitable Distribution (QCD), you can support Tommie students while lowering your taxable income.

If you are 70½ or older, you can give a gift of up to $100,000 directly from your IRA to support scholarships, or any area where you would like to make an impact. While you will not receive an income-tax deduction, you will not pay taxes on any distributions made to St. Thomas. A gift from your IRA also reduces your taxable income – even if you do not itemize deductions.

Benefits of giving through your IRA:

• Counts toward your required minimum distribution (RMD)
• Can lower your taxable income and taxes
• May keep you from being bumped into a higher federal and/or state tax bracket
• May reduce future Medicare premiums
• Allows you to make a gift that is not subject to the deduction limits on charitable gifts
• Can use to make payments on an existing pledge
• See the impact of your generosity during your lifetime.

How to Make a Qualified Charitable Distribution

Contact your IRA plan administrator and request that a "qualified charitable distribution" be made from your account to "University of St. Thomas." Often, a request form is available through your plan administrator’s website.

Your plan administrator will need our tax ID and address: University of St. Thomas P.O. Box 64947 St. Paul MN 55164-0947 ID #41-0693970.

If possible, on the form’s comment or notes section, please indicate any specific instructions as to where you would like your gift directed at St. Thomas.

If your plan administrator provided you with a personal IRA checkbook, you may use that to make your gift.

2. Keep Your Records

You will receive an acknowledgment from the University of St. Thomas that you can use to substantiate your contribution as a qualified charitable distribution and show that your contribution qualifies as a tax-free distribution from your IRA.

You will not be able to claim a separate income-tax charitable deduction for this contribution. However, the withdrawal from your IRA to charity will be tax-free because it is not included in your adjusted gross income.

QCD Eligibility Requirements

• The distribution must be made from the IRA directly to St. Thomas. Do not allow the distribution to be made payable to you.
• You must be age 70½ or older at the time the distribution is made.
• The distribution must be made from an Individual Retirement Account (IRA), not from any of the other types of retirement plans, such as 401(k) or 403(b). However, it may be possible to make a tax-free transfer from those types of accounts to an IRA, from which a charitable rollover can then be made. Please consult with your financial adviser for details.

Name St. Thomas as an IRA Beneficiary

Many donors who have included St. Thomas in their estate plans have done so through a beneficiary designation of their IRA. By giving your retirement plan to St. Thomas, your estate will receive a 100 percent charitable deduction and will avoid income taxes on those assets. By comparison, if you left your retirement plan to children or grandchildren, those assets could result in substantial income taxes.

When you name St. Thomas as a full, partial or contingent beneficiary of your IRA, you are eligible to become a member of our Finn Legacy Society. By letting us know that St. Thomas is a beneficiary, we can ensure that we understand how you would like your gift to be used.

For more information or to let us know that St. Thomas is a beneficiary, please contact us.