Looking for a Way to Save on Your 2018 Taxes?
As the tax laws continue to change, most of us are searching for help to understand the changes and direct more of our money away from taxes and to organizations we care about. You should always consult with a trusted tax adviser and when you do, ask about tax-free IRA gifts to charities. The tax laws allow you to donate money directly from a traditional IRA to a charity like UUC without triggering taxes – but only if you meet a strict age requirement. You can only transfer money tax-free from your IRA to a charity (called a “qualified charitable distribution” or QCD) after you turn 70½ years-old. You can use this tax-free distribution to satisfy your “required minimum distributions” (RMDs) from your IRA. RMDs generally are minimum amounts that a retirement plan account owner must withdraw annually, starting with the year that he or she reaches 70½ years of age.
In other words, if you are 70½ years-old and are required to make a withdrawal from your IRA, you may be able to transfer that money directly to UUC, without paying taxes on it. You won’t get a tax deduction for that charitable donation because you never took possession of it, but many people are choosing to not itemize this year because of the increased standard deduction. You can use that tax-free RMDs to fulfill your 2018 – 2019 annual operating pledge or building fund commitment early, or make an additional gift that will support the life and the future our congregation.
If you have questions about how to meet the requirements of the tax laws for IRAs, consult with a professional tax adviser, and if you want to learn more about including UUC in your will or estate plan, please get in touch with Ken Mundt at 206-325-5067 or firstname.lastname@example.org.