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“We have been making charitable gifts directly from an IRA because they reduce the taxable portion of the minimum distribution required of us senior citizens. So, even though we have not been able to itemize our deductions (and there is no charitable deduction for the Massachusetts income tax) we get the same result on our federal and state taxes. The administrator of the IRA is now set up to make such gifts easily, and even to send the check (payable to the charity) to us for sending along to the charity. It’s a no-brainer to help the charities, like Cooley Dickinson Hospital, that are important to us.”
– Kent and Scottie Faerber
With thoughtful gift planning, you can make the gift of a lifetime to Cooley Dickinson. How might you make an impact in 2024? Here are some tax saving ways to make your charitable contribution before the end of the year:
Appreciated Securities – Contributing appreciated securities avoids all the capital gains tax that would be due if you sold. If you itemize your income tax deductions, you can claim a charitable deduction for the full market value of the securities too.
Contribution From Your Ira – If you are age 70½ or older, you can make a Qualified Charitable Distribution (QCD) from your IRA. Unlike other withdrawals, there is no income tax on your QCD contribution.
Required Minimum Distributions (RMD) – If you are facing RMDs from your retirement accounts, your QCD contribution can reduce your RMD with no income taxes.
Don’t have an IRA? – If you have a different retirement plan like a 401(k), you can arrange a tax-free rollover from that qualified retirement plan to an IRA and then make your QCD contribution from the IRA.
Legacy Giving – A beneficiary designation directing a contribution to Cooley Dickinson from your retirement account at the end of your lifetime can avoids the income tax your estate or heirs would pay if you left your retirement account to them.
Lifetime Payments – Now is a great time to consider a charitable gift annuity with lifetime payments for you or someone else. Gift annuity rates are the highest they’ve been in many years. You may even be able to use some of your IRA assets to fund a charitable gift annuity.
These are just a few of the tax savvy ways you can support our work this year end. We’re here to help, contact us today.
