18 Jan Hidden Value: IRA gifts and Match Week
Something to keep in mind with Match Week approaching is the utilization of your Qualified Charitable Deductions (QCD) from your IRAs Required Minimum Distribution (RMD).
What is an RMD?
An RMD is your required minimum distribution that you must begin withdrawing from your individual retirement account (IRA) when you turn 72 years old.
Do I have to pay taxes on this distribution?
This withdrawal is a taxable event and is added to all other taxable income you receive. Depending on your income level, this distribution may be taxable.
This is where a QCD could be helpful for your situation. Once you turn 70 ½ years old, you can donate your required minimum distributions (any amount up to $100,000 annually) to the 501(c)3 entity of your choice and not be taxed on the donation portion of your distribution. This is referred to as a Qualified Charitable Distribution (QCD).
Why utilize it during match week?
Besides helping your organization build it sustainability through its endowment, you will also be helping the organization take advantage of our $150,000 in matching funds (Matching rule and guidelines).
Another big advantage to donating during match week in this way is that the distributions do not have to be sent to the foundation until Dec. 31 of this year. This does allow for you to pull from your IRA when it is best for you and your family.