Date: November 8, 2018
November 15, 2018 (2 days ago)
How IRA deductions can be donated to nonprofits They say charity begins at home, but your charitable donations may go further if they never wind up at home or in your bank account. That's because, if you're a senior 70 1/2 or older you could get a great tax break by donating your IRAs minimum required distribution (MRD) directly to a charitable nonprofit organization. Depending on your financial circumstances, this could be a smart way to give generously while reaping some benefits yourself How it works An IRA can be a useful way to save for retirement and a valuable wealth-building tool.And while you've contributed to your IRA account for years so you can reap the benefits later,you may not be ready to take your distributions when required at age 70 1/2 If that's the case, you may benefit from a smart and generous tax benefit contributing your IRA distributions directly from your account to a charitable nonprofit organization, or 501 (c)(3). Since you made contributions to your IRA account on a pretax basis, youll be required to pay taxes on distributions from that because she helps community members do account when you begin receiving them.These distributions increase your taxable income, which may complicate your financial situation. For some, the added income may place the taxpayer into County.Stammerjohn he Find out more it every day.Through the Community Foun If you're ready to find out more about dation of Greene reducing your taxable income while giving to charity, the Community Foundation of Greene County will be holding an infor- mational seminar Nov. 12 at 7 p.m. at the lps community igher tax bracket. For others, it could be a way to ensure your charitable organizations of their choosing. charitable contributions are tax-free, even if you don't qualify to itemize your deductions. members create endowments to benefit Community Foundation's offic burg, advising individuals and nonprofits es in Waynes- And for those who qualify, she always recom- wments be funded through on the benefits of donating through IRA Who should do it? According to Bettie Stammerjohn, executive director of Commu nity Foundation of Greene County, any IRA holder over 70 1/2 who donates to a charitable nonprofit stands to benefit from this tax break. IRA accounts distributions. An endowment differs from a typical do- nation in that the donations are invested, and proceeds of those investments are then distributed regularly to the organization of If you don't need it, donate it," Stammer- john said. "It benefits you while doing some good for the community. The typical American household supports five to 10 charitable organizations per year," Stammerjohn said."This is a way to sup- port those organizations while decreasing your taxable income." This article is brought to you by pWe help individuals find ways to share their gifts with the community. Stammerjohn said. nity Fou ndation Additionally, with a new tax plan in effect as of 2018 that doubles "Endowments allow your donated funds t the standard deduction, it's possible you'll no longer itemize your keep giving year after year." deductions the only way to take advantage of the charitable giving deduction. Giving through your IRA distributions allows you to get the same tax break without itemizing your deductions. for ever Community Foundation of Greene County endowments also come with a special perk: convenience. of Greene County According to Forbes, the only reason not to take advantage of charitable donations made through your IRA distributions you're able to get a greater tax benefit by donating substantially appreciated long-term capital gains property. Since your donations are invested, those funds just continue to grow," Stammerjohn said. "There's no need to write a check every month, and the organization you choose A journalism groduate from Brigham Young University, Kristen has experience writing a variety of fields, including art and culture, health and fitness and financial and real Making it easy receives a regular income it can count on and estaervices. Kristen has written for USA Stammerjohn understands the benefits of gifting through your IRA plan around:" Today, SFGate and the Knot.