Reduce Your Tax Burden
EVEN IF YOU DON'T ITEMIZE
If you are like most people receiving annual income from their IRA, you are likely paying more in taxes each year.
The good news is that making a Qualified Charitable Distribution (QCD) from your IRA to a charity, like United Way of Lincoln and Lancaster County, can help reduce your tax bill while supporting causes near to your heart.
What is a Qualified Charitable Distribution (QCD)?
At your direction, the custodian or trustee of your IRA can transfer money from your IRA directly to a qualified public charity, like United Way of Lincoln and Lancaster County, so that you can support the causes that matter most to you. To make a QCD, you must be at least 70½ years old, your gift must be made from a traditional IRA, and you can give up to $105,000 per year.
Double the Benefits
The law allows up to $105,000 per person to be distributed from an IRA to a qualified charity each year. If you are married, this means you and your spouse can each give up to $105,000 per year as long as you each own an IRA. If you file taxes jointly, a double gift can go a long way toward reducing your taxes.
Why a QCD?
Making a QCD from a traditional IRA comes with a number of advantages, including:
Your gift is excluded from taxable income — which is a nice tax benefit
It allows you to give from pre-tax assets
It may prevent you from being pushed into a higher tax bracket and help you avoid the limit on charitable deductions
It is easy to make — just notify your IRA custodian
It minimizes the effect on your cash flow; the gift is from your assets, not your checkbook
How does the QCD from your IRA work?
You provide the custodian of your IRA with written instructions to make a direct gift from your IRA payable to the charity of your choice. Many custodians provide a form that you can use. Once you complete the form, the custodian will follow your instructions and send the gift to your chosen charity.
May We Help You?
To learn more, please contact us. We would welcome the opportunity to answer further questions and work with you and your advisors.
Meagan Liesveld, Executive Director
United Way of Lincoln and Lancaster County
402-441-7700
mliesveld@unitedwaylincoln.org