If you have an IRA and have reached the age of 70 ½ years old, you can make a gift through an IRA Qualified Charitable Distribution.
It helps you and it helps the Blue Ridge Women’s Center
- HOW IT HELPS YOU: It can lower your taxable income and count towards your Required Minimum Distribution.
- HOW IT HELPS BRWC: We can put your gift to use right away in providing important funding to the Blue Ridge Women’s Center.
It is that time of year when many of us must take a Required Minimum Distribution from an IRA. Normally, Required Minimum Distributions (RMD’s), are considered regular income and must be reported as such when you file your income tax return. However, you can make a distribution directly from your IRA to any charity, including the Blue Ridge Women’s Center, without incurring taxes on the withdrawal. Therefore, you can make a charitable contribution to BRWC and potentially reduce your taxable income with a Qualified Charitable Distribution from your IRA.
In order to qualify:
- You must be 70 ½ or older at the time you make the distribution.
- The distribution must be made from a traditional IRA directly to the charity.
- The gift must be outright with no material benefits received and cannot be used to fund gift annuities.
Your Qualified Charitable Distribution:
- Can total up to $100,000 per year
- Can be used to satisfy your Required Minimum Distribution
- May be excluded from gross income for Federal income tax purposes
For more information, contact your financial advisor or bank, and ask about a Qualified Charitable distribution from your IRA.
This blog post is written by our guest, Cassandra Laymon, President of Beacon Wealth