If saving on taxes at year-end sounds good to you, and if you’re over age 70 1/2 and have some extra income, here’s a tax-advantaged way to save–and give.
Many older adults are taking their annual Required Minimum Distributions (RMDs) each year, and that income is included in their annual income.
Taking an IRA distribution this year might mean you’ll pay more in taxes, and even reach a higher tax bracket. Rolling over some or all of your IRA’s required minimum distribution to the Community Foundation can help reduce your tax bill, while supporting Outer Banks charities.
If you are 70 ½ or older, you can make a gift of up to $100,000 this year from your IRA. Compare the impact of taking your RMD, versus the benefits of making an IRA charitable rollover gift to charity:
Taking Your RMD
- You pay income tax on your distribution
- You may not need the money
- Your tax dollars go to Washington
- You are limited by the RMD rules
Making an IRA Gift
- You’ll pay no income tax on your gift
- You can help support charities you love
- Your gift can help build your charitable legacy
- You can use your IRA in the way you want
An IRA charitable rollover gift can benefit both you and the Outer Banks. If you’ve ever considered creating an endowed fund that you can name and that can support causes you are passionate about, now and for future generations, your next IRA RMD might be the ideal opportunity. Contact your IRA administrator to get started with your gift. You will not pay taxes on any distributions made to charitable funds (Note: gifts to DAFs do not qualify for this tax break).
You can find out more about gifts from Individual Retirement Accounts here. Please inform us of your plans so that we can work with you to help you achieve your philanthropic goals.
As always, thank you.