Have you wondered what to do with this year’s required distribution from your IRA? If you are 70 ½ or older, you can make a contribution of up to $100,000 annually from your IRA account to support vital programs and services at the Topeka and Shawnee County Public Library.
A donation transferred directly from your IRA to The Library Foundation is not considered federally taxable income for you, but it does count toward your required minimum distribution.
What are the benefits of giving a charitable gift through your IRA?
- This is a great way to make a gift to the library, especially if you don’t itemize deductions on your tax return.
- This is an opportunity to reduce your tax burden if your IRS required minimum distribution gives you more income and tax than you want to pay in a particular year.
- It’s like getting a deduction because while the distribution counts towards your required minimum distribution, it is not included in your gross income.
- The key is asking your IRA institution directly to transfer the funds to The Library Foundation and not to you as the “middle man”.
A traditional IRA is also a great gift to leave to the library after you pass away. If the IRA was left to your beneficiary, that person would likely owe income taxes on the proceeds. Since The Library Foundation doesn’t pay income tax, the full amount goes to support the library you love.
For more information, call us at 785-580-4498, or have your IRA administrator help you make a charitable rollover gift to The Library Foundation. As always, please consult your advisors to determine if this type of gift is right for you.