Did you know that charitable contributions can be made using your Individual Retirement Account (IRA)? If you are in the fortunate position of not needing your IRA distribution for living expenses and are charitably inclined, you can avoid income tax on your required withdrawal by donating your money directly to a qualifying charity.
Karen Karls, Greater Itasca Area resident states, “I have been very fortunate in life and have used my IRA distribution more than once to donate to one of my favorite charities – the Greater Itasca Area Community Fund. At the time there were matching funds that doubled my donation and using my IRA distribution made it easy to do. I simply contacted my financial advisor and told them where I wanted the distribution to go.”
Donations can also be distributed to different charities out of one IRA distribution. IRA owners must be age 70 1/2 or older to make a tax-free charitable contribution. Those who meet the age requirement can transfer up to $100,000 per year directly from an IRA to an eligible charity without paying income tax on the transaction.
If you are interested in making a donation using your IRA distribution, please contact your local financial advisor. If you would like more information about the Greater Itasca Area Community Fund or other charitable options, you can contact the Grand Rapids Area Community Foundation. The Foundation has been connecting donors’ charitable intentions to community needs for over 25 years to make our Greater Itasca Area – and the world – a better place to live. For more information, visit our website at www.gracf.org or schedule a visit by calling (218) 999-9100.
PHOTO: Karen Karls