Now you can reliably plan charitable IRA rollover gifts, year after year. As of 2015, new Federal law extends the charitable IRA rollover provision indefinitely — with no expiration date — allowing individuals to make qualifying gifts every tax year.
An IRA Gift Eliminates Tax Penalties and Saves Costs
A Qualified Charitable Distribution (QCD) is an otherwise taxable distribution of up to $100,000 from an IRA owned by an individual who is age 70½ or over that is paid directly from the IRA to a qualified public charity like Brightpoint. This giving strategy will allow you to achieve your charitable goals while securing a significant cost and tax consequence savings for you and your family. These tax and cost savings are realized whether or not you itemize deductions on your income tax.
Making a QCD has three primary tax and cost savings benefits for you.
- A QCD, unlike other IRA transactions, does not qualify as income for tax purposes; the transaction is not taxed in any way.
- A QCD counts towards your minimum required distribution for the year, which would otherwise be taxable income.
- A QCD will reduce your Adjusted Gross Income (AGI) by the contributed amount, which provides significant cost savings. Your AGI determines how much of your Social Security is subject to income taxes, if you will be subject to the Net Investment Income Tax, and the amount of your Medicare premiums in the following year. Reducing your AGI can helps lower these associated costs.
This Year, Turn Your Tax Burden into a Brighter Future for Every Child!
If you require any additional information or have any questions, please contact:
Director of Annual Giving