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The Qualified Charitable Distribution: Approved for you to use - permanently

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Tom McConomyThe qualified charitable distribution (QCD) from your IRA is permanent, easy to use, and ideal for giving that helps reduce your tax burden.

“It’s as easy as falling off a log,” says Carnegie Mellon Trustee Emeritus Tom McConomy, (E 1955). Made permanent by congressional and presidential action in 2015, the QCD allows McConomy to contribute annual gifts to his alma mater simply and conveniently.

“It lets the bank do all the work,” he stresses, “and it’s a reminder at the end of the year that you ought to get moving.” Because he can confidently count on using it this year and into the future, he can more easily set longterm philanthropic plans.

Here’s how the qualified charitable distribution works: When you reach age 70½, you are required to withdraw a minimum distribution from your IRA each year. Jon Saxe and Myrna Marshall

To avoid the additional tax penalty created by higher income, the QCD allows you to transfer your required minimum distribution (up to $100,000) directly and tax-free to a qualifying charity, such as Carnegie Mellon University.

Donors Jon Saxe, (E 1957) and Myrna Marshall have used the QCD for a number of years, taking advantage of its straightforwardness as they support undergraduate research opportunities at Carnegie Mellon.

“It’s very easy, the bank takes care of it,” they say. “You can achieve your charitable goals with a big tax advantage.”

If you are interested in using the qualified charitable distribution, contact the Office of Gift Planning to learn more. Please call Joseph Bull, J.D., executive director of gift planning, at 412-268-1948 or email him at askjoebull@andrew.cmu.edu.