IRA Charitable Donations

If you are over the age of 70.5, you can potentially receive tax benefits from giving qualified charitable distributions from an individual retirement account.

Individual Retirement Accounts and their Required Minimum Distributions

Individual Retirement Accounts (IRAs) provide a tax-advantaged way for individuals to save money over a long period of time to have a steady stream of income during their retirement years.

Beginning at the age of 73, the IRS mandates that owners of IRSs take annual income withdrawals, called Required Minimum Distributions. Failure to take these withdrawals can subject those IRA owners to stiff penalties. There are a handful of reasons that retirement-age individuals may not want to take an RMD, such as having other sufficient sources of income. Additionally, these withdrawals are subject to ordinary income tax, and could push the individuals into a higher tax bracket which could have negative impacts on Social Security payments an Medicare benefits.

Qualified Charitable Distributions

As a registered 501c3 non-profit, Aging True does not pay income taxes on the donations we receive. As a result, distributions to our organization will avoid being taxed as income. A charitable individual retirement account (IRA) rollover is a fantastic option for those 70 1/2 and over, as it allows you to make a direct gift to support our community’s seniors – from $100 to $100,000 annually – without the distribution counting as taxable income.