Your IRA can help you to support Centenary
Are you turning 70½ this year? It may be time to start thinking about IRA Required Minimum Distributions (RMD). Your RMD can leave you with a tax bill because it is taxed as ordinary income.
This year, instead of paying more in taxes, use your RMD from your IRA to support Centenary College. You will not be taxed on the transfer, and it counts as your required distribution. Best of all, it is easy. Contact your IRA custodian to see how you can maximize tax savings. The IRA charitable distribution allows you to transfer up to $100,000 from your IRA directly to nonprofits. You pay no taxes on the transfer, and your gift supports our students, professors and programs at Centenary. All retirement accounts where contributions are made on a pre-tax basis are subject to RMD requirements including tradition IRAs, 401(k)s, 403(b)s, and 457s.
According to Emily Brandon, the senior editor for Retirement at U.S. News, “If you are in the fortunate position of not needing your distribution for living expenses and are charitably inclined, you can avoid income tax on your required withdrawal by donating your money directly to a qualifying charity.”
RMD rules are tax rules, and we recommend that you speak to your CPA or financial advisor to see if this a smart, tax-savvy option for you. Please contact David Henington or call 318.869.5151 in gift planning if you have questions on how to direct your RMD to support Centenary.