You may be able to reduce or avoid taxes from your Required Minimum Distribution and give more money to your favorite charitable organization - such as Eastern Area Community Ministries - through a Qualified Charitable Distribution.
If you are age 70 ½ or older and you own a Traditional IRA, you are subject to a Required Minimum Distribution (RMD). The government requires you to withdraw a minimum amount of money from your retirement accounts and pay taxes on it each year.
How does it work?
A Qualified Charitable Distribution is an otherwise taxable distribution from a Traditional IRA owned by an individual who is age 70 ½ or over that is paid directly from the IRA custodian to a qualified charitable organization. Rather than paying taxes on the entire distribution and then giving the remainder of the money to charity, you can avoid the taxes altogether and give more money to your favorite qualified charity. If you file your taxes using the standard deduction, a Qualified Charitable Distribution may give you a tax break that you would not ordinarily receive for donating money to charity. It’s a win-win for everybody!
Ask your tax professional
Please seek professional tax advice to determine if a Qualified Charitable Distribution would be a good option for you. Do not attempt a Qualified Charitable Distribution without prior professional recommendation. EACM does not provide professional tax advice and cannot determine if it is in your best interest to perform a Qualified Charitable Distribution.