Boost Your Support for Children in Need With a Tax-Smart Gift From Your IRA
The IRA charitable distribution is back for good. You can transfer up to $100,000 (per person, per year) directly from your individual retirement accounts to a qualified charity like Save the Children.
Once you have turned 70 ½, by law you have to withdraw a minimum amount each year from your traditional IRAs and employer-sponsored retirement plans - and it is considered taxable income. When you make a charitable distribution from your IRA directly to Save the Children, it is not taxed.
If you are already planning to make a year-end gift to Save the Children, or don’t need the required minimum distribution amount by year-end, the charitable distribution is a wonderful way to provide more children with a healthy start, opportunity to learn and protection from harm.
Anna turned 70 ½ and will be taking $1,000 out of her IRA this year. She will pay an additional $350 in income taxes (assuming her tax bracket is 35 percent), leaving her with about $650 in total. She does not need this income, so Anna directs the distribution to Save the Children instead. This distribution will not affect her taxes, and the full $1,000 will go directly towards helping vulnerable children in need.
Read about a wonderful supporter of Save the Children and how she celebrated her half birthday.
Use this sample letter to request the charitable distribution from your IRA administrator, and allow time to process it before year end. Distributions must be made directly to Save the Children. Please consult with your financial and tax advisors.
For any questions about IRA charitable distributions, gifts of stock and other planned gifts to support Save the Children, don’t hesitate to contact the Office of Planned Giving at 800-544-4470 or firstname.lastname@example.org.