Did you know that you could reduce your taxable income by donating your required minimum distribution (RMD) to a qualified charity?
Community Foundations are public charitable foundations and, as thus, are eligible to receive RMD donations into any endowment, fiscal sponsorship or field of interest fund.
- As an IRA owner, when you are 72 or older, you must take a RMD every year. A tax benefit favorable to IRA owners is called an IRA Charitable Rollover, also known as a Qualified Charitable Distribution (QCD).
- Each year you may contribute up to $100,000 of your RMD directly to a
qualified charity like Illinois Prairie Community Foundation. This allows you to avoid declaring the income from the distribution, which would otherwise be taxed at your highest marginal rate.
- The CARES Act suspended required distributions for 2020. But, if you are over 701/2 (the previous start date for RMDs), you may still benefit from using you IRA to make a direct transfer to a qualified charity and avoid tax on the distribution.
- If you are making a distribution from your IRA into a charitable fund at IPCF, please send us an email or call our office (309-662-4477) to let us know to expect the check. Allow for extra time to process the distribution before the end of the year.
Contact your financial planner for details on how to take advantage of this opportunity.