There is a point in time during retirement when you must withdraw the minimum annual amount designated by your IRA plan. When considering the Required Minimum Distribution (RMD), there are a few important things to consider:
- Donating your RMD to a 501(c)3 like the Franscisan Foundation for the Holy Land is a great opportunity to increase your charitable giving and avoid heavy taxation on any amount not withdrawn. If you have an employer-sponsored retirement plan and are at the age of 72, you will have a RMD.
- Donating IRA funds you do not need is a great way to expand your philanthropic support to a cause that has personal meaning to you. RMD funds, up to $100,000, that are donated to a charity will not be included in your taxable income.
- Calculate your RMD in advance and decide how much you are planning to donate. Once you have given your gift, make sure to include your donation on a relevant tax document when you file for your annual taxes. Planning and staying abreast of evolving tax code changes will not only provide tax benefits but will allow you to expand your charitable giving portfolio.
We are thinking of our family of supporters during these times of uncertainty and want you to know that we appreciate you. We know this is a challenging time for many people. It continues to be challenging for us too, yet we will continue pressing forward in our work and mission to preserve the Living Stones of the Holy Land. If you would like to speak to us about gift planning strategies, we are here to help.
Disclaimer: This information is provided as a public service to highlight a matter of current interest. It is not intended to constitute a full review of any subject matter, nor is it a substitute for obtaining financial or legal advice from an accountant or financial advisor, or an attorney. Information contained within was accurate at the time of publication on December 6, 2021.
Source: “Donating Your IRA Required Minimum Distribution (RMD) to Charity by https://www.charitynavigator.org/index.cfm?bay=content.view&cpid=9221”