Did you know that if you are age 70.5 and older, you can give to VBJI up to 100,000 annually from your IRA without it counting as taxable income? Here are some details about which you should be aware:
Here's an example of how this might benefit you if you are 70.5 years of age or older and must take a minimum disbursement from your IRA:
Jamie is 72 and has an IRA. She does not need all of the money she would have to take in her Required Minimum Distribution. She can transfer a portion of those funds to herself for personal use, and another portion directly from her IRA to VBJI. Jamie can reduce the tax burden to herself, while at the same time benefitting human trafficking victims in Hampton Roads. The money she transfers to VBJI counts towards the Required Minimum Distribution but is excluded from her Adjusted Gross Income (AGI) at tax time.
Consider making a difference for victims of human trafficking by asking your Tax Adviser whether an IRA Charitable Rollover (Qualified Charitable Distribution) would be right for you.
- QCD's count towards your required minimum distribution, the minimum amount that you must withdraw from your IRA once reaching 70.5 years of age.
- These disbursements can't go towards donor advised funds or life income gifts such as gift annuities.
- Donors cannot receive anything in exchange for the gift such as tickets to an event or meals.
- QCD gifts can only be made from IRA's. In order to give from a 401(k) or other savings vehicle, the money must first be rolled over into your IRA. Then you can request a fund transfer to charity.
- Donors cannot count a QCD gift on your federal taxes even if you itemize. The tax benefit is in the direct transfer of funds so that the income is not taxable to the donor.
- State laws very with regard to QCD's and how they are handled so it is best for you to consult a professional tax adviser before making a decision to give through a QCD.
Here's an example of how this might benefit you if you are 70.5 years of age or older and must take a minimum disbursement from your IRA:
Jamie is 72 and has an IRA. She does not need all of the money she would have to take in her Required Minimum Distribution. She can transfer a portion of those funds to herself for personal use, and another portion directly from her IRA to VBJI. Jamie can reduce the tax burden to herself, while at the same time benefitting human trafficking victims in Hampton Roads. The money she transfers to VBJI counts towards the Required Minimum Distribution but is excluded from her Adjusted Gross Income (AGI) at tax time.
Consider making a difference for victims of human trafficking by asking your Tax Adviser whether an IRA Charitable Rollover (Qualified Charitable Distribution) would be right for you.