Many of us have had the satisfaction of watching the money in our IRAs grow, tax-free, for years. But the day inevitably arrives when Uncle Sam knocks at the door with an outstretched palm. Here are a few ways you can consider using those funds to make easy and tax-smart gifts to the causes that matter most to you:
First, did you know that, starting at age 70 1/2, you can give make gifts from your IRA to qualified charities like the Institute for Justice—tax-free? These gifts are called “qualified charitable distributions” (QCDs) and are made directly from your account custodian to a charity. You don’t need to itemize to make a QCD.
What’s more, for individuals 72 and older, these gifts can count toward your required mandatory distribution (RMD).
Another easy and tax-savvy option is to make a charity like the Institute for Justice a beneficiary of a tax-deferred account. The distribution comes to us tax-free, which means the full value of your hard-earned money can be put to use in our fight to defend the constitutional rights that matter most from government abuse and overreach. Just ask your IRA custodian or plan administrator for a beneficiary designation form.
Want to learn more? Watch the video below, or reach out to us for more information!