Making an IRA qualified charitable distribution (QCD) is a popular and tax-efficient way to support the U of M or M Health Fairview. If you are 70 1/2 or older, you can contribute up to $100,000 each tax year directly from your IRA to the U of M Foundation without paying federal income tax on the withdrawal. The gift can count towards satisfying your required minimum distribution (RMD).

The Consolidated Appropriations Act of 2023 includes changes related to IRA QCDs:

• Beginning in 2024, the annual IRA QCD limit of $100,000 will be adjusted annually for inflation.

• The new law also increases the RMD age from 72 to 73 for IRA owners who were not subject to RMDs as of December 31, 2022. However, it does not affect the age at which donors can make a QCD, which is 70 1/2.

• Donors 70 1/2 and older can now make a one-time qualified charitable distribution of up to $50,000 from their IRA to fund a charitable gift annuity or charitable remainder trust. Special rules apply.

To learn more, contact the U of M Foundation gift planning team at [email protected] or (612) 624-3333.