YOUR IRA IS GOLDEN!
Did you know you can donate through your IRA (Individual Retirement Account)?
When one turns 72 a Required Minimum Distribution (RMD) must to taken from one’s IRA. A charitable gift is a great way to meet this requirement and support a community you care about via the United Way of Pierce County. Calculate your RMD here.
People who are age 70 ½ or older can contribute up to $100,000 from their IRA directly to a charity and avoid paying income taxes on the distribution. This is known as a qualified charitable distribution. It is limited to IRAs, and there are other exclusions and considerations as well.
When contributing via your IRA, your gift will be put to use immediately, allowing you to see the difference your donation is making for individuals and families in our community.
Donating an IRA to charity upon death
When you name a charity as a beneficiary to receive your IRA or other retirement assets upon your death, rather than donating retirement assets during your lifetime, the benefits multiply:
Neither you and your heirs nor your estate will pay income taxes on the distribution of the assets.
Your estate will need to include the value of the assets as part of the gross estate but will receive a tax deduction for the charitable contribution, which can be used to offset the estate taxes.
Because charities do not pay income tax, the full amount of your retirement account will directly benefit the charity of your choice.
It’s possible to divide your retirement assets between charities and heirs according to any percentages you choose.
You have the opportunity to support a cause you care about as part of your legacy.