There’s a tax-smart way for traditional IRA owners, aged 70½ or older, to give to Stepping Stone Emergency Housing: Make a Qualified Charitable Distribution.   

 For 2024, you can transfer up to $105,000 directly from your IRA to Stepping Stone Emergency Housing. For individuals with more than one IRA, the $105,000 cap applies per account owner, not per IRA. The amount next year will be a bit higher because of inflation indexing. Spouses who each have an IRA can do their own QCD. You can each give up to $105,000, provided each of you has substantial amounts in your traditional IRAs. There are three main tax benefits of QCDs.   

  • First, they are not taxable to you  
  • Second, they are not added to your adjusted gross income, which can help you mitigate surcharges on your 2026 monthly Medicare premiums. The QCD strategy is a good way to get tax savings from charitable gifts for taxpayers who don’t itemize because of higher standard deductions. But even if you do itemize on Schedule A, QCDs are a good tax strategy because the distributions don’t increase your annual gross income (AGI).  
  • Third, QCDs can count toward your annual required minimum distributions, but be sure to do the QCD before taking your full RMD for the year for yourself. Note you can’t deduct the QCD as a charitable contribution on Schedule A. 

There are a few other important QCD rules that you should be aware of:   

Only transfers of money from your IRA directly to a charity like Stepping Stone qualify as QCDs. Most IRA custodians will require you to fill out a form requesting the charitable payout. The custodian will then either send a check directly to the charity or make a check payable to the charity and send it to you to mail. In either circumstance, get a receipt from the charity. If you happen to have check-writing privileges on your IRA account and want to write the check to the charity yourself, first ask the custodian if that’s OK.   

The QCD money must generally go to a Section 501(c)(3) organization. Stepping Stone Emergency Housing is recognized by the IRS as a 501(c)3 charitable organization. The SECURE 2.0 law provides a limited exception to this. IRA owners can do a one-time QCD of up to $53,000 through a charitable gift annuity, a charitable remainder unitrust or a charitable remainder annuity trust.   

 You cannot do a QCD from a 401(k), 403(b) or other workplace retirement plan. You can only do a QCD from your IRA. 

 You must be at least 70½ on the QCD date. If you turn 70½ on Nov. 1, for example, you must wait until that day or later to make the transfer. 

 Remember, a Qualified Charitable Distribution is a great way to support Stepping Stone and our work to end homelessness. This method of giving may also have significant tax advantages for you. Be sure to check with your financial advisor or other investment professional to make sure you are maximizing the benefits of your QCD gift. 

Stepping Stone Emergency Housing has met the Charities Review Council’s stringent standards for excellence in nonprofit management. We have once again received our Meets Standard approval through 2024! 

Stepping Stone Emergency Housing is a registered 501(c)(3) charitable organization. One hundred percent of your donation is tax deductible to the fullest extent of the law. Upon receiving your donation, we will send you a letter which will serve as your gift receipt.   

Tax ID# 20-3226868 

Start your QCD journey today and join us in making a difference! For questions or assistance, contact Paul DeGeest at Paul.DeGeest@steppingstoneeh.org