Your individual retirement account (IRA) is an excellent tool for saving for your retirement years. Even better, it’s an extremely easy way to support children, today. If you are 70 1/2 or older, you can use the IRA charitable rollover (sometimes referred to as a qualified charitable distribution or QCD) to make a tax-free gift to The Children’s Foundation.
Here’s how it works:
You can transfer any amount up to $100,000 per year directly from your IRA to a qualified nonprofit like The Children’s Foundation. If you’re married, both you and your spouse qualify for a $100,000 QCD. When you give from your IRA:
- Your gift will be put to use today, allowing you to see the difference you’re making for children in our region.
- You pay no income taxes on the gift. The transfer doesn’t generate taxable income or a tax deduction, so you benefit even if you do not itemize your tax deductions.
- Your gift can be used to satisfy all or part of your IRA’s required minimum distribution (for those 72 and up).
New in 2023!
Beginning this year, you have the option to make a charitable distribution (one time, up to $50,000) from your IRA directly into a charitable gift annuity or charitable remainder trust. This gives you the opportunity to receive an income during your life with a charitable gift planned for later.
Not 70 1/2 yet?
Once you reach 59 1/2, you may begin taking money out of your IRA without penalty. You’ll pay income tax on the amount you withdraw, but if you itemize your tax deductions, you are eligible to take an income tax charitable deduction for the full value of the gift.
Extend your impact!
Unable to part with assets today? You can name The Children’s Foundation as a beneficiary of your IRA, other retirement plan assets, life insurance policy, or donor advised fund.
If you have more questions, we can help you turn your giving goals into a reality! Please contact director of Donor Relations and Gift Planning, George Westerman at GWesterman@YourChildrensFoundation.org or (313) 745-9344.