Changes under the new tax law are motivating older adults to make tax-free gifts to charity from an IRA.
Now permanently in the U.S. tax code is the ability for individuals age 70½ and older to make income tax-free outright gifts up to $100,000 from their IRAs to charities like the Foundation. This type of gift is commonly called a Qualified Charitable Distribution (QCD), and the amount counts toward the Required Minimum Distribution (RMD) from your traditional IRA.
Gifts must be completed before Dec. 31 to be eligible in the current tax year.
Important points to consider:
- You must be at least 70½.
- The gift should come directly to the Foundation from your IRA account administrator, in the form of a check.
- The gift may come from a Traditional or Roth IRA (special exclusions may apply to other types of IRA accounts).
- Although there is no tax deduction, there is NO income tax on the IRA withdrawal.
What are the advantages?
- Benefit the Foundation’s work in a meaningful way today.
- Meet your Required Minimum Distribution (RMD).
- Pay no income tax on the amount withdrawn for your gift.
- Give above your deductible charitable limit of 50 percent of adjusted gross income.
You can give by having your IRA administrator send a check to:
Eden Prairie Community Foundation
8080 Mitchell Road
Eden Prairie, MN 55344
Accompanying paperwork should identify your name and address, and whether your gift is intended for a specific program or for the Foundation’s general use.
The Foundation’s Tax ID number is 41-1409203.
For more information contact Foundation Executive Director Mark Weber at (952) 949-8499 or [email protected].