OPTION 1: a traditional qualified charitable distribution (QCD)

You may find this appealing if you would like to make an immediate gift that counts toward your required minimum distribution (RMD). It works like this: 

• If you are an IRA owner age 70½ or older, you can direct a transfer from your IRA directly to Timothy Two.

• The gift does not qualify for an income tax deduction, but any amount up to the annual aggregate limit ($105,000 in 2024) is tax free. 

• The gift counts toward your RMD if one is due (generally, beginning at age 73).

• Your gift has an immediate impact on reaching pastors and equipping them to train others—and you can make this gift every year if you choose.

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Calculate your RMD now.

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OPTION 2: a one-time qualified charitable distribution

This option lets you make a gift that counts toward your RMD and also creates an income stream for retirement. It works like this: 

• If you are an IRA owner age 70½ or older, you can direct a one-time transfer from your IRA to create a new charitable gift annuity (CGA) or charitable remainder trust (CRT).

• The gift does not qualify for an income tax deduction, but any amount up to the limit ($53,000 in 2024) is tax free. 

• The gift counts toward your RMD if one is due (generally, beginning at age 73).

• Spouses may contribute up to $53,000 each from their own IRAs into a single CRT or a joint-life CGA. 

• Income payments may only go to the IRA owner and the owner’s spouse and are taxed at ordinary income tax rates.

• This is not an annual gift—you may only use this option once.

To learn more about these options, click here to read about charitable gift annuities or charitable remainder trusts. Keep in mind that some of the rules and requirements differ if you fund the CGA or CRT from your IRA.