DID YOU KNOW THAT... Owners of Traditional Individual Retirement Accounts after age 70½ can donate from their IRAs to qualified charities, such as Divinity Lutheran Church, and have the donations count towards their required minimum distribution! The amount donated is not included in your income.
For many people age 70½ or over, the days of itemizing on your taxes are long gone. Most people in this age group do not have high enough expenses, such as mortgage interest expense or state and local income taxes from a job that would allow them to itemize. In fact, if you do itemize, it may only be to deduct large charitable contributions.
In 2015, President Obama signed into law the Protecting Americans from Tax Hikes (PATH) act which included making permanent the Qualified Charitable Distribution (QCD). This tax savings tool, which allows taxpayers to reduce their taxes if they have money in IRA’s and want to make a charitable contribution, had been going in and out of the law for many years.
The QCD is a wonderful tax lowering strategy which supports people’s decisions to be charitable. If you are interested in a QCD, please consult with your IRA trustee, your tax advisor, your financial advisor and Paula McCormick our church administrator. No amount is too small and if you are in a taxable situation, every amount will most likely save you money.