Skip to main content

Year-End Financial Planning

make a difference for those in need in Lackawanna and Wayne Counties with a tax-free Qualifying Charitable Distribution from your IRA before December 31st.

If you are age 70 ½ or older, you can make a tax-free donation to a qualified charity such as the United Way of Lackawanna and Wayne Counties from your IRA!

What is a “Qualifying Charitable Distribution”?
A Qualifying Charitable Distribution (QCD) is a direct transfer of funds from your IRA administrator, payable to a qualified charitable organization – such as the United Way of Lackawanna and Wayne Counties. Unlike regular withdrawals or distributions from an IRA, a QCD excludes that donated amount from taxable income which may help reduce the impact to various tax credits and deductions including Medicare and Social Security.
 
QCDs can be counted toward satisfying your required minimum distributions as long as certain rules are met: 
  • Distribution must be made from a traditional IRA or a Roth IRA
  • Distribution must be direct from the IRA trustee to the charitable organization—with no possession or ownership by the IRA owner;
  • Distribution will only qualify when the IRA owner has reached age 70½ or older
  • Distribution must be made to a qualified charity such as the United Way of Lackawanna and Wayne Counties 
  • Maximum annual amount is up to $100,000
  • To count toward the current year’s required minimum distribution, the funds must be distributed from your IRA before December 31st. (Any QCDs completed after that date will be counted toward the 2018 required minimum distribution.)
How Do I Make a Qualifying Charitable Distribution to the United Way of Lackawanna and Wayne Counties?
  • To make a QCD, instruct your IRA trustee/administrator to make a transfer from the IRA directly to the United Way of Lackawanna and Wayne Counties.
  • The check must be made payable to the United Way of Lackawanna and Wayne Counties (PO Box 526  |  Scranton, PA 18501-0526
  • According to IRS regulations, the QCD will not qualify if the funds are not transferred directly to the United Way or charity of choice
  • After receiving your donation, the United Way of Lackawanna and Wayne Counties will issue a letter, formally acknowledging receipt

For additional information, please consult your IRA administrator, your tax advisor or contact Jack Evans, United Way of Lackawanna and Wayne Counties’ CFO at (570) 343-1267 x228.