This is a great time of year to think about using your 2022 Individual Retirement Account (IRA) distribution for good. Instead of making charitable gifts with income subject to taxation, why not consider a direct contribution of some or all of your IRA’s 2022 required minimum distribution to Outer Banks Community Foundation? If you are 72 or older, minimum distributions from your IRA are mandatory. If you don’t need all of this income, and if you want to support causes important to you, a Qualified Charitable Distribution (QCD) is a tax-savvy strategy. The benefits include:
- You’ll pay no income tax on your gift
- Your gift can be used to establish or grow your charitable legacy
- You can support the charities you love while avoiding more tax
Anyone over age 70 ½ may make a QCD of any amount up to $100,000 directly from their IRA to one or more charities in 2022. To expand your charitable impact even further, you can also name the Community Foundation as a beneficiary of your IRA account.
Gifts to charity from your IRA can benefit you and the charities you love. As with all planned gifts, contact your financial advisor for information specific to your situation. Then contact your IRA custodian to get started with your gift. Last, but not least: let us know about your gift, so we can be on the lookout and can ensure it is directed according to your wishes. Thank you.