Qualified Charitable Distributions (QCDs)
For parishioners age 70½ and older: a great way to support St. Katherine and reduce taxes.
Many older parishioners hold tax-deferred Individual Retirement Accounts (IRAs), which often began as 401(k) accounts during their working years. These accounts were funded with pre-tax earnings: the money came out of your paycheck before taxes were taken out. In retirement, these funds pay for your expenses. Because they weren't taxed when deposited, they are fully taxable as ordinary income when you withdraw them. You can withdraw without penalty any time after age 59½, and at age 73 you must take a Required Minimum Distribution (RMD) each year, based on your age and your IRA balance at the end of the previous year. You pay tax on that withdrawal as ordinary income.
What Is a QCD?
The Pension Protection Act of 2006 (P.L. 109-280) created the Qualified Charitable Distribution. Starting at age 70½, you can make a voluntary withdrawal from your IRA that is paid directly by your financial institution to a qualified charity or tax-exempt organization like St. Katherine. In 2026, a QCD can be up to $111,000 per person older than 70½, or $222,000 for a married couple when both are older than 70½.
You pay no tax on the QCD, and as a tax-exempt organization, the church pays none either.
When you file your taxes for that year, you cannot also deduct the QCD on Schedule A, because it was not made with previously taxed money.
A QCD counts toward that year's RMD, up to your entire RMD (subject to the 2026 limit of $111,000 per person).
It's a win-win: you support the church, pay no tax on the gift, and St. Katherine receives the full amount.
Please note: consult a tax professional to make sure this is right for your circumstances before making any withdrawal or donation. St. Katherine does not provide tax advice and does not guarantee that the information on this page is accurate, since tax laws change often.