RMDs & QCDs

Support the NSL while reducing your taxes!

If you are over the age of 70 and own an Individual Retirement Account (IRA), you may be able to make a Qualified Charitable Distribution (QCD) to both support NSL and reduce your taxable income.

If you are age 73 or older, you are required by Federal law to withdraw a portion of your IRA every year, called a Required Minimum Distribution (RMD), and it is taxable as ordinary income. However, the amount you withdraw is not taxable if you transfer funds directly from your IRA administrator to a Qualified Charity.

A direct gift to NSL (a Qualified Charity) counts toward your RMD for the year. It is a great way to support the mission of the NSL; the gift funds are not included in your taxable adjusted gross income. Keeping your taxable income lower may affect certain tax credits and deductions, including Social Security and Medicare.

Can I make a Qualified Charitable Distribution?

While many IRAs are eligible for QCDs —Traditional, Rollover, Inherited, and SEP and SIMPLE (inactive plans only) — there are specific requirements:

  • You must be 70½ or older to be eligible.
  • Funds must come out of your IRA by your RMD deadline, generally December 31, and be sent directly from the IRA to the charity.
  • QCDs are limited to the amount that would otherwise be taxed as ordinary income. This excludes non-deductible contributions.
  • The maximum annual amount is $105,000. This applies to the sum of QCDs made to one or more charities in a calendar year. (For joint filers, a spouse can also make, within the same tax year, a QCD, up to $105,000, from a separately owned IRA.)

If you have any questions about this process, or if you would like to make a QCD to the NSL, please contact the NSL Executive Director, execdirector@navalsubleague.org.

NSL is a 501(c)3 non-profit organization, IRS number 52-1270467.

See Fidelity Charitable's guidance for QCDs to learn more about the rules and future updates.