Smart Giving From Your IRA
A Tax-Saving Way to Support Better Care
It's possible to make a difference today and save on taxes when you support your favorite MultiCare program or foundation through your IRA.
A Special Opportunity for Those 70½ Years Old and Older
You can give any amount $1 to $100,000 per year from your IRA directly to a qualified charity like MultiCare without having to pay income taxes on the money. This popular gift option is commonly called the IRA charitable rollover, but you may also see it referred to as a qualified charitable distribution, or QCD for short.
Why consider this gift?
- Your gift will be put to use today, allowing you to see the difference your donation is making.
- Beginning in the year you turn 72, you can use your gift to satisfy all or part of your required minimum distribution (RMD).
- You pay no income taxes on the gift. The transfer generates neither taxable income nor a tax deduction, so you benefit even if you do not itemize your deductions.
- Since the gift doesn’t count as income, it can reduce your annual income level. This may help lower your Medicare premiums and decrease the amount of Social Security that is subject to tax.
Frequently Asked Questions
No. The legislation requires you to reach age 70½ by the date you make the gift.
Yes. Direct gifts to a qualified charity can be made only from an IRA. Under certain circumstances, however, you may be able to roll assets from a pension, profit sharing, 401(k) or 403(b) plan into an IRA and then make the transfer from the IRA directly to the non-profit organizations you care about like MultiCare. To determine if a rollover to an IRA is available for your plan, speak with your plan administrator.
Yes, absolutely. Beginning in the year you turn 72, you can use your gift to satisfy all or part of your RMD.
No. You can give any amount $1 to $100,000 under this provision per year. If your IRA is valued at more than $100,000, you can transfer a portion of it to make a charitable gift.
We must receive your gift by Dec. 31 for your donation to qualify this year. If you have check-writing features on your IRA, please be aware that your check must clear your account by Dec. 31 to count toward your required minimum distribution for the calendar year.
No. Under the law, you can give a maximum of $100,000 per year. For example, you can give each organization $50,000 this year or any other combination that totals $100,000 or less. Any amount of more than $100,000 in one year must be reported as taxable income.
If you have a spouse (as defined by the IRS) who is 70½ or older, they can also give any amount up to $100,000 from their IRA.
Unfortunately, the law does not permit using a qualified charitable distribution to establish a charitable gift annuity or a charitable remainder trust. However, you can designate some or all of your retirement plan assets to fund a charitable gift annuity or charitable remainder trust after your lifetime. A charitable trust or gift annuity provides lifetime income to your family or other loved ones. When the gift arrangement ends, the balance will support your favorite MultiCare program or foundation.
By making an IRA charitable rollover gift, you can see your philanthropic dollars at work now. You are jump-starting the legacy you would like to leave and giving yourself the joy of watching your philanthropy take shape. Moreover, you can fulfill any outstanding pledge you may have made by transferring that amount from your IRA as long as it is $100,000 or less for the year.
For Those 59½ Years Old or Older
If you’re at least 59½ years old, you can take a distribution and then make a gift from your IRA without penalty. If you itemize your deductions, you can take a charitable deduction for the amount of your gift.
At Any Age
No matter your age, you can designate the MultiCare program or foundation you care about as the beneficiary of all or a percentage of your IRA and it will pass to us tax-free after your lifetime. It’s simple, just requiring that you contact your IRA administrator for a change-of-beneficiary form or download a form from your provider’s website.
Tip: It’s critical to let us know of your gift because many popular retirement plan administrators assume no obligation to notify a charity of your designation. The administrator also will not monitor whether your gift designations are followed. We would love to talk to you about your intentions to ensure that they are followed. We would also like to thank you for your generosity.
Get free planning help
The MultiCare Foundations is proud to provide free and confidential estate planning services through Thompson & Associates for friends like you.
Not sure how to begin planning?Download a free personal estate planning kit
Ready for next steps?
- Use our tool above Take action! Give from your IRA to connect to your retirement provider and to find sample letters for you to use.
- Contact our gift planning team at 253-403-3093 or firstname.lastname@example.org to discuss using your IRA to support your favorite MultiCare program or foundation and better care in your community.
- Seek the advice of your financial or legal advisor. (Need an advisor? Look here for advisors familiar with MultiCare foundations and services.)
- To include a MultiCare program or foundation in your plans, please use our legal name and federal tax ID.
- Please let us know of your gift (many retirement providers assume no responsibility for letting nonprofits know of your intentions so your goals won't be honored).
Legal name: MultiCare Health System
Legal address: 315 Martin Luther King Jr. Way, Tacoma, WA 98405
Federal tax ID number: 91-1352172