News Blog
Charitable Donations
4/20/2021
Using an IRA to make a charitable donation can help lower a tax bill and help a worthy cause. Distributions must be made directly to the charity, not to the owner or beneficiary. All distribution checks need to be made payable to the charity or they will be counted as taxable distributions.
How a Qualified Charitable Distribution Works
Normally, a distribution from a traditional IRA incurs taxes since the account holder didn’t pay taxes on the money when they put it into the IRA. But account holders aged 70½ or older who make a contribution directly from a traditional IRA to a qualified charity can donate up to $100,000 without it being considered a taxable distribution. The deduction effectively lowers the donor's adjusted gross income (AGI).
Every donation makes an impact. Examples: Instead of buying coffee or going out to lunch one day, donate what you would have spent instead to our Foundation. Your help is much appreciated.