donate from your ira
If you're 70½ or older, you can make a charitable contribution directly from your IRA account to The Transition Network without paying any federal income tax on the withdrawal — and the contribution may help you save on state and local income taxes as well.
It’s a wonderful way to do something meaningful for an organization that enriches your life — and reap tax benefits at the same time.
You qualify for this benefit if:
- You’re over the age of 70½ on the date of the distribution,
- You make the charitable contribution directly from your IRA,
- Your total contributions to charities from your IRA in the calendar year don’t exceed $100,000,
- You receive no economic benefit from TTN in exchange for the gift, and
- You did not make any deductible contributions to your IRA in the same calendar year as the donation (if so, only part of your donation is excluded from income tax).
It’s a simple two-step process:
- First, contact the holder of your IRA. Explain that you want part of your IRA paid directly to TTN, and request the required form. Some kinds of IRAs (such as Roth IRAs) and distributions (such as after-tax contributions you made to your IRS) are exceptions so be sure yours qualifies. Please allow enough time for TTN to receive the check by December 31st (or by April 1st following the year you turn 70½); this can take a month or longer. Our address is One Penn Plaza, Suite 6166, New York, NY 10119.
- Second, alert TTN that you’re making the gift. We’ll provide you with a letter acknowledging the date and amount, and specifying that it came from your IRA. Just call 347-735-6035 or email us at firstname.lastname@example.org. We will be happy to assist you with any questions on the process.
We’ll be pleased to thank you publicly, on behalf of the women of TTN, for leading the way.And keep in mind for 2021: if you’re 72 or older, you will be required to take a minimum distribution from your IRA each year, and these distributions are subject to federal income tax. (No distribution is required in 2020 due to the CARES Act.) But if you make a donation to TTN as described above, the donation counts towards your required minimum distribution but is not subject to federal income tax. You’ll not only save on taxes, you’ll provide important support to grow the TTN programs and activities you enjoy so much.
Since each person's circumstances are unique
and the law sometimes changes,
please check with your financial advisor
to confirm how a donation will impact your own taxes.
Material from www.thetransitionnetwork.org, 15:33:55 May 6, 2021.
Copyright © The Transition Network 2021