Giving from your IRA benefits both you and the Society!
For those over the age of 72, the IRS has offered a way to donate to one’s favorite non-profits so that the amount will be exempted from income taxes and more funds will be available to the organization.
Holders of IRA’s and other tax qualified savings plans are required to receive a minimum distribution (the “RMD”) each year after they reach the age of 72. Those withdrawals are taxed as income. If those withdrawn funds are then donated to a charity, that donation may or may not be deductible from taxable income as a charitable donation because of various restrictions.
Your required minimum distribution can certainly be used to fulfill your annual fair share contribution to NYSEC or to make a special donation to the Ethical Society or the American Ethical Union. If you have any questions about how this works, please call your tax or investment advisor for more information.
Watch this video for more information: