The “Pension Protection Act of 2006” provides those 70.5 years old or older the opportunity to gift directly from their Individual Retirement Arrangement (IRA) account to a qualified 501(c)(3) organization! Bethlehem (BLC) qualifies! Upon setting up this process with your IRA Trustee, a check is cut to Bethlehem by the Trustee. You instruct the Trustee the amount and frequency of each donation. The donation is also known as a “Qualified Charitable Distribution” (QCD). Also, QCDs are excluded from taxable income! Most Trustees mail the check, made out to BLC, to the donor who then gives the check to the church.
At year end, a 1099R is issued to the donor by the Trustee. The amount of the QCD is included in total distributions on the 1099R, but is excluded from taxable income on your tax return by your income tax preparer. In this way, donors avoid income tax and BLC benefits. There are a few other details, but these are the basics.
If you would like more information, contact Roger Herd!
God’s Grace,
The Stewardship Team
Roger Herd,
Daryle Odden,
Steve Rye, and
Karen Vidot
