Qualified Charitable Distributions

QCDs are also known as a Charitable IRA Rollover. QCDs allow individuals age 70½ and older to make direct transfers of up to $100,000 per year (and up to $200,000 per year for married couples) from individual retirement accounts to qualified charities, like OneFamily, without having to count the transfers as income for federal tax purposes. Since no tax is incurred on the withdrawal, gifts do not qualify for an income tax charitable deduction but are eligible to be counted toward an individual’s minimum required distribution (RMD).

Provisions of the Charitable IRA Rollover:

• Distributions must be made directly to a qualified charity, such as OneFamily, by the plan administrator of an IRA. Retirement assets in 401(k), 403(b), SEP, or SIMPLE plans do not qualify but may be rolled into a new or existing IRA and transferred to the charity.
• Distributions may only be made to 501(c)(3) tax exempt organizations and cannot be made to donor advised funds, private foundations, or supporting organizations.
• Distributions may not be used to fund life-income gifts such as charitable gift annuities, charitable remainder trusts, or pooled income funds.

Making a distribution is an easy process. Simply contact your IRA Custodian and tell them that you would like to make a charitable donation from your IRA. Your custodian must transfer the money directly to OneFamily. Typically, they will supply you with a distribution form for you to fill out and return. Do not withdraw the funds and make a contribution yourself, or you will have to report the withdrawal as taxable income.

When you contact your IRA custodian, request that they make a direct transfer to:
OneFamily Fund
Chaim Szafranski, Treasurer
1029 Teaneck Road, Suite 3B
Teaneck, NJ 07666

Our tax ID number is: 11-3585917. If you are requesting the transfer at the end of the tax year, please allow enough time for the transfer to be completed by December 31st. For any other questions, please call (646) 289-8600 and ask for Chaim Szafranski (OneFamily Treasurer) or Naomi Nussbaum (Executive Director).
At the end of the year, the administrator will provide you with a Form 1099-R so that you can report it on your taxes. The distribution will go on your Form 1040 tax return, where you will report the distribution as a non-taxed QCD. See the Form 1040 instructions and contact your tax professional for additional information.

The information provided herewith is not intended as legal, accounting, or other professional advice. For assistance in planning charitable gifts with tax and other financial implications, the services of appropriate advisors should be obtained. Consult an attorney for advice if your plans require revision of a will or other document.