QUALIFIED CHARITABLE DISTRIBUTION FROM IRA
If you turned 70 1/2 years of age before January 1, 2020 or 72 years of age sometime in 2020, you are required to take an annual distribution from your individual retirement account. The amount of your required minimum distribution (RMD) will be added to your adjusted gross income for income tax purposes.
If your philanthropic plans include supporting BookSmiles, a direct contribution from your IRA may be the most financially beneficial way for you to make a gift. As mentioned, under normal circumstances, the RMD from your IRA will increase your taxable income. While such a gift is not tax deductible, per se, gift up to $100,000.00, while avoiding an increase to your adjusted gross income.
Donors turning 70 1/2 after January 1, 2020 are no longer required to withdraw assets from an IRA until they turn 72, but they may still wish to make a qualified charitable distribution if they no longer itemize expenses or have reached the maximum for their charitable deductions in a given year.
If your philanthropic plans include supporting BookSmiles, a direct contribution from your IRA may be the most financially beneficial way for you to make a gift. As mentioned, under normal circumstances, the RMD from your IRA will increase your taxable income. While such a gift is not tax deductible, per se, gift up to $100,000.00, while avoiding an increase to your adjusted gross income.
Donors turning 70 1/2 after January 1, 2020 are no longer required to withdraw assets from an IRA until they turn 72, but they may still wish to make a qualified charitable distribution if they no longer itemize expenses or have reached the maximum for their charitable deductions in a given year.
