If you have a Required Minimum Distribution from your IRA, you may donate it to Finlandia Foundation National and save on your taxes.
At age 72, the IRS requires that you begin making withdrawals from your IRA or other employer-sponsored retirement accounts, or face costly penalties and fees. But many retirees don’t need the income to live and, by taking the Required Minimum Distribution (RMD), they trigger higher taxes.
By donating the RMD directly to a 501(c)(3) organization, like Finlandia Foundation National, retirees can avoid these taxes and support their favorite non-profits. The dollar amount of the gift may be excluded from your taxable income up to a maximum of $100,000 annually. Eligible
accounts include:
· Traditional IRAs
· Rollover IRAs
· SIMPLE IRAs
· SEP IRAs
· Most 401(k) and 403(b) plans
There are no RMDs for Roth IRAs, unless they are inherited.
Unless they are donated to charity, the IRS will tax your RMDs as income. This means that these distributions will count toward your total taxable income for the year, which may push you into a higher tax bracket, impact the taxes you pay for your Social Security or Medicare, and may be subject to additional local and state taxes. So, if you don’t need the income to live, contact your tax advisor and consider donating directly through your retirement accounts to a charity like Finlandia Foundation National.
