Year End Giving
It’s Not Too Early To Do Some Year End Tax-Planning.
In Fact, It Will Soon Be Too Late! With the end of the calendar year fast approaching, we’re hoping that you’ll consider a year-end, tax-deductible gift in support of the Lake Washington Schools Foundation.
Here our some tips and advice from one of our financial savvy board members....
In 2011, those over 70 ½ can give their IRA directly to charity. Although you will not receive a charitable income tax deduction, there are many advantages to consider in gifting your IRA’s Required Minimum Distribution (RMD). By making a Qualified Charitable Distribution (QCD) directly to charity, you will not pick up the distribution as taxable income avoiding an increased Adjusted Gross Income (AGI). Meaning you won’t have to pay income taxes on the gift as income received!
In addition, a reduced AGI, will lower the tax on Social Security Benefits or may lower the floor for Schedule A Medical Expenses and Miscellaneous Deductions which are subject to Adjusted Gross Income phase-outs.
However, visit a tax adviser if you are interested in a QCD to be sure that this is the most appropriate route for your overall finances.
Is a QCD right for you? That depends, as each family’s situation differ from the next.
If you answer ‘yes’ to all or most of the following, this may be a good fit for you.
- Are you required to take a 2011 RMD?
- Do you routinely make generous charitable contributions?
- Do you desire to minimize your 2011 taxes?
Remember a critical key factor in this potential tax break. The funds must be paid directly to the charity. Although you can have the check mailed to you, it must be payable to the charity, not you.
Please Note: This is not intended, and cannot be relied upon, as tax advice. Each Taxpayer’s situation and ultimate results of exercising the potential tax break described above may vary. Consult with your professional tax advisor and retirement plan consultant prior to taking any action with your financial resources.
For More Information
For more information, contact Bob Guild of the Lake Washington Schools Foundation