With the holidays right around the corner and tax season on its heels, now is the perfect time to think about tax-effective ways to donate to Women In Distress now or in the future through planned giving. Your Individual Retirement Accounts (IRAs) can help you lower your taxable income through qualified charitable distributions (QCD) and required minimum distributions (RMDs) while also helping Women In Distress.
What Is a Qualified Charitable Distribution (Also known as an IRA Charitable Rollover)?
Beginning at age 70½ and older, the IRS requires you to take Required Minimum Distributions each year from your IRA, even if you don’t need the money. This additional taxable income may push you into a higher tax bracket and possibly reduce your eligibility for certain tax credits and deductions. To avoid or reduce the impact of the required minimum distribution income, you may want to consider making a qualified charitable distribution.
How to make a Qualified Charitable Distribution to Women In Distress
Women In Distress is a qualified charity and is eligible to receive qualified charitable distributions. Distributions can be made directly to an eligible charity from a traditional IRA, inherited IRA, inactive Simplified Employee Pension (SEP) plan and inactive Savings Incentive Match Plan for Employees (SIMPLE) IRAs (these are accounts that no longer receive employer contributions). Your IRA custodian can either send a check directly to Women In Distress or give the check to you to deliver to the charity. Donations must be made by December 31 to count toward this year’s required minimum distribution.
What type of charities can receive a Qualified Charitable Distribution?
According to the tax code, certain charities are not eligible to receive qualified charitable distributions, including donor-advised funds, private foundations, and supporting organizations. Eligible charities include 501(c)(3) organizations like Women In Distress. Donors are also not allowed to benefit from their qualified charitable distribution, so using the funds to play in a charity golf tournament or to sponsor an event would not qualify.
Tax laws are subject to change, so be sure to consult with a tax professional before making a qualified charitable distribution.
Women In Distress is set up to accept qualified charitable distributions as donations.
Please contact Development Director, Michael Barron at firstname.lastname@example.org or 954-760-9800 Ext. 1278 for more information on this and other planned giving options.