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Scenarios with Retirement and Income in Mind
You would like to make a more substantial charitable gift, but you do not think you can afford to lose the income from any of your investments - especially now when you are concerned about the direction of the economy.
Actually, it is possible to make a gift and receive payments for life. In many instances your income will actually increase and you may reduce the income tax you are currently paying. One of the most popular of these "life-income" gifts is the gift annuity, and we are pleased to report that as of July 1 the payments that you would receive from a gift annuity substantially increased. You do not have to worry about future changes in the rates for the amount that is paid to you is locked in for life and never alters.
You are over the age of 70½ and you have an IRA. The IRA distributions plus other sources of income are more than you need for living expenses.
If you are aged 70½ or older, you can authorize your IRA administrator to make distributions (not to exceed $100,000 annually to all charities combined) from your IRA to one or more charities. The amount transferred is known as a qualified charitable distribution (QCD). It counts toward the mandatory annual distributions from the IRA, which currently begin at the age of 72, and it is not included in taxable income. Since it is not included in income as would be the case if the distribution were made to you, it is equivalent to a charitable deduction. Thus such a gift is beneficial even if you do not itemize deductions. |
