Make a difference today and save on taxes? It is possible when you support cancer research through your IRA!
There’s a Special Opportunity for Those 70½ Years Old and Older:
You can give amounts from your IRA directly to a qualified charity such as the Kiwanis Doernbecher Children’s Cancer Program (KDCCP) without having to pay income taxes on the money. Gifts of up to $100,000 are eligible for this benefit, and you can feel good knowing that you are making a difference in funding research to end children’s cancer.
This popular gift option is commonly called the IRA charitable rollover, but you may also see it referred to as a qualified charitable distribution, or QCD for short.
Why Consider This Gift?
- Your gift will be used today, allowing you to see the difference your donation is making.
- Beginning in the year you turn 72, you can use your gift to satisfy all or part of your required minimum distribution (RMD).
- You pay no income taxes on the gift. The transfer generates neither taxable income nor a tax deduction, so you benefit even if you do not itemize your deductions.
- Even if you don’t itemize deductions in general, you effectively get a deduction from an IRA gift because it is not included in your income as it would be if you simply withdrew the required amount.
To maximize the benefit of your RMD, your IRA funds should be transferred from the IRA directly to KDCCP. If you withdraw cash directly from the IRA and then send to the charity yourself it could entail income tax withholding requirements, plus itemization deduction rules can result in reduced income tax benefits.
The best results generally come by directing your IRA to distribute funds directly to your charity. Contact your tax advisor to review your contribution plans.
Every IRA custodian will have their special form to manage these transfers. If you have any questions about donating to KDCCP through your IRA, or need any assistance, you may contact Bob Smith, KDCCP Treasurer, at firstname.lastname@example.org.