This tax-wise giving strategy is an all-around win.
If you are over 70 ½, you can gift funds from your IRA at a tax savings. Here’s how it works:
- You must be 70 ½ or older.
- Your gift must be transferred directly from your IRA account to the Harris Center for Conservation Education.
- Your gift is a transfer of funds from your IRA to the Harris Center, so while you do not receive a charitable deduction, it does not create taxable income for you.*
- You may transfer up to a total of $100,000 per year (individual) or $200,000 (married couple).
- If you are required to take a Required Minimum Distribution (RMD) from your IRA, your gift can count towards it, but your gift is not limited to your RMD. If you are using a checkbook issued by your IRA administrator to make your gift, please send your gift as early as possible to ensure that it qualifies for a distribution in the current year.
* Please seek advice from your financial advisor regarding the tax implications of your gift, particularly if you plan to continue to contribute to your IRA after age 70 ½, as your gift may not qualify for these tax benefits.
For more information on making a QCD from your IRA to the Harris Center or to discuss any questions you may have, please contact Jeremy Wilson for a confidential conversation at (603) 525-3394 or by email.