Give from Your IRA and Help Satisfy Your RMD for the Year

Giving from Your IRA Distribution
Can Be a Smart Move

You may be looking for a way to make a big difference to help further our mission to champion student success. When you invest in a traditional IRA, you are building your retirement with pre-taxed dollars. The government taxes you only when you withdraw from your account. You can start withdrawing money from your IRA penalty-free at age 59 1/2. However, once you reach age 73, the government requires you to withdraw at an increasing percentage each year (please see table below). This mandatory withdrawal is called a Required Minimum Distribution (RMD). If you make a withdrawal, you will be taxed based on your ordinary income. If you don’t make a withdrawal, you will be penalized upwards of 50% of that you do not withdraw.

Suppose you only need some of your IRA income and are charitably inclined. In that case, you can donate directly from your IRA to a qualifying public charity (501(c)(3)), such as Hartnell College Foundation, starting at age 70 1/2. This Qualified Charitable Distribution lets you give up to $105,000 annually without making a required withdrawal or paying income tax on your gift. In addition, your gift may fully satisfy your RMD for the year. It’s a win-win scenario, especially if you want to support a nonprofit like Hartnell College Foundation.

To learn more about the benefits of giving directly from your IRA, please vist our website.

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