Making Charitable Gifts from IRA Accounts Gives Tax Advantage
BY ALLISON KOZICHAROW; EDITED BY BERNICE BORN
Did you know that if you are over age 70½ years you can reduce your taxes by making a gift directly from your IRA to WiRED International? You can lower your income and taxes for this year while helping WiRED receive 100% of the distribution amount.
In December 2015, the U.S. Congress passed a law allowing you to give up to $100,000 to a charity directly from your individual retirement account (IRA) when you are over 70½ years old — without counting the distribution as taxable income. This type of charitable gift is called a Qualified Charitable Distribution (QCD).
QCDs count as IRA distributions and can be used to satisfy all or part of your required minimum distribution. This makes them particularly useful for senior citizens who are still working, have a large pension, or, in general, find themselves in a higher tax bracket.
To make a gift, it is important that you have the gift amount distributed directly from your IRA to WiRED. WiRED must receive your gift by December 31 in order for you to take advantage of the tax benefits for the year. For those of you with check writing privileges on your accounts, this may be the most efficient way to make gifts directly from your IRA. Check with your IRA administrator or your tax advisor for more information.
Please consider giving to WiRED, a tax-exempt 501(c)(3) non-profit organization. We pledge to spend your donation wisely. Most of the staff are volunteers, and 95% of our funds go directly into programming. Your generous contribution will go to work immediately to improve the quality of health — the quality of life — for many thousands of people in underserved and troubled regions.