Here is the step-by-step process for making a tax-free donation to BAiP using a Qualified Charitable Distribution (QCD) from your Individual Retirement Account (IRA) to satisfy your Required Minimum Distribution (RMD).

Step 1: Verify Eligibility and Key Rules

  • Age Requirement: You must be at least 70½ years old on the exact day of the transfer to qualify for a QCD, even though RMDs may start later (age 73 or 75 depending on your birth year).
  • Annual Cap: For 2026, the individual annual limit for QCDs is $111,000 (married couples filing jointly can contribute up to $222,000 if each has their own qualifying IRA).
  • Account Type: Funds must come from a Traditional IRA, Inherited IRA, or an inactive SEP/SIMPLE IRA. Active employer plans (like a 401(k) or 403(b)) are not eligible unless first rolled over into an IRA.

Step 2: Request a Direct Transfer

CRITICAL RULE: The distribution must be transferred DIRECTLY from your IRA custodian to BAiP. If the check is made payable to you, the distribution becomes fully taxable, even if you hand it to BAiP later.

  • Contact your IRA Custodian: Ask for their specific ‘IRA Qualified Charitable Distribution Request Form’.
  • Fill out the form providing BAiP’s details, as follows: 
    • BAiP’s Legal Name: Bloomingdale Aging in Place, Inc.
    • Address: P.O. Box 497, New York, NY 10025
    • Employer Identification Number (EIN): 26-4742989
  • Check Option: If your custodian gives you a checkbook for your IRA, you can write the check directly to BAiP, provided it is drawn on the IRA account and cleared by December 31.

Step 3: Obtain and Keep Documentation

  • Written Acknowledgment: Request a contemporaneous written acknowledgment from BAiP stating the donation amount and confirming that you received no goods or services in exchange.
  • No Double Dipping: Because a QCD is excluded from your adjusted gross income (AGI), you cannot claim it as an itemized charitable deduction on Schedule A.

Step 4: Report Correctly on Your Taxes

  • Form 1099-R: Your custodian will issue Form 1099-R. Note that it usually shows the full amount as a normal distribution; it is up to you or your tax preparer to report it correctly to the IRS.
  • Form 1040 Reporting: Report the total distribution on line 4a of Form 1040. On line 4b (Taxable amount), enter ‘0’ (or the remaining taxable balance if only a portion was a QCD), and write ‘QCD’ next to line 4b.