So you’ve just filed your taxes and are regretting not doing more to help reduce the amount you owe to the government. What steps can you take now to ensure you don’t face this problem next tax season?
If you are age 70½ and older, consider making a tax-free gift of up to $100,000 from your Individual Retirement Account (IRA) to the charity of your choice without incurring a federal income tax.
The IRA Charitable Rollover is a simple and effective solution for those who want to make a difference in their community, alleviate a tax burden and satisfy their annual required minimum distribution. Plus, it might be the most effective charitable gift for someone who may not have the cash assets available to support their favorite charitable causes. This tool is especially effective for those who do not need to take an annual distribution from your IRA and prefer not to pay taxes on that income.
Roy and Darlene Thornton used the IRA Charitable Rollover to establish the Roy Edward and Darlene Young Thornton Scholarship fund at the Oklahoma City Community Foundation to support students graduating from Mid-Del Pubic Schools. The Thorntons were active in their community and looking for a way to give back. By working with Roy’s attorney, the Oklahoma City Community Foundation helped Roy make tax-free gifts from his retirement assets to support his scholarship fund.
“At my age, I’m required to take an annual distribution from my IRA,” said Roy. “Instead of paying taxes on that money, I was able to make a gift to benefit kids that really need it.”
Learn more how the Oklahoma City Community Foundation can help you make a greater impact in your community by using your IRA fund to give back for less at occf.org/ira.