Make a Tax-Free Distribution from Your Individual Retirement Account

For those who are 70½ or older, funds can be distributed tax-free from your Individual Retirement Account (IRA) to The Salvation Army or another favorite qualified charity through 31 December 2019 – and until Congress changes the law, you can continue the distribution for future years.  Done correctly, this amount can count toward your required minimum distribution (RMD).

These distributions are not deductible as charitable contributions, but you pay no tax on these distributions.  Just think – instead of paying tax on your required minimum distribution, you can help a great cause and owe Uncle Sam no tax on the money you are required to distribute from your IRA.  Would you like to know more?

Here’s how it works:

  • You must be 70½ or older at the time of distribution.
  • Distributions to donor advised funds or to life income vehicles do not qualify.*
  • Timing is critical: Complete your qualified charitable distribution by December 31, 2019 and owe NO Federal income tax on the amount transferred – up to $100,000.
  • Your IRA administrator must make the distribution in the name of the qualified charity, i.e., The Salvation Army of Central Oklahoma.

Here’s how to get started:

Step 1- Contact your financial/tax advisor. You may use the enclosed “Sample Letter of Instruction” to initiate contact with your financial advisor about your intention.

Step 2- Let us know if you decide to make the distribution to the Salvation Army. Often the fiduciaries do not provide clear documentation with the distribution check is from a donor’s IRA. The Salvation Army is required by IRS Tax Code to provide specific wording to you in acknowledgement of your IRA distribution.

Notify us by calling Julie at (405) 254-1169 or email her at julie.dais@uss.salvationarmy.org  at 405-254-1169 to help us properly acknowledge the distribution.

The Salvation Army’s federal tax identification number is 58-0660607

Questions?  Please contact:  The Salvation Army – Planned Giving Office, 6601 N. Broadway Extension, Oklahoma City OK 73116    Phone: (405) 254-1169