Written By: William M. Trust Jr., Jawonio Inc Board Member
A direct contribution whether part of a “Required Minimum Distribution” (RMD) or not makes sense for anyone older than 70 ½. A direct contribution from a plan avoids federal income tax and counts against an RMD requirement while helping Jawonio build a future and change lives for people with special needs for decades to come.
Upon reading about why an RMD is the way to go for your charitable contributions– I would ask you to call the Jawonio Development Office for a tour and find out more about planned giving opportunities for Jawonio.
You can reach Diana Hess by phone at: 845-708-2022 or via email at: email@example.com
Diana: “Hello Bill. Thank you so much for joining us to share information about Gifts from Retirement Plans. Please tell us about why this is an important giving strategy for donors.”
Bill: “Income taxes on contributions to and appreciation on assets in a retirement plan are tax deferred but not avoided completely. That means that as these assets are withdrawn during retirement, they are subject to federal income tax. This is very important for individuals at retirement age to understand.”
Diana: “We know that a gift to the Jawonio Foundation will support our mission. How can making a gift from a retirement plan help the donor?”
Diana: “Is that true across the board, for every donor?”
Bill: “It is only for those persons aged 70 ½ or older, they are better advised to take advantage of the special opportunity described below.”
Special Opportunity for Donors Aged 70 ½ and older:
- A direct transfer from your IRA to the Jawonio Foundation can be excluded from your gross income, but no income tax deduction is allowed for the transfer. In order to qualify for this benefit:
- You MUST be 70 ½ years old, or older
- The transfer must go directly from the IRA to the Jawonio Foundation
Your total IRA gift(s) cannot exceed $100,000 per year.
- Your gift must be outright
Note that withdrawals by those 59 ½ years old or younger will be subject to early-withdrawal penalty unless the donor falls within certain exceptions.
- Working with your financial and tax adviser is always advisable to assure compliance with the Federal requirements.
Diana Hess, Chief Development Officer