ANOTHER WAY YOU CAN HELP YOUR GRANDCHILDREN HAVE A BRIGHT FUTURE & RECEIVE A TAX BENEFIT!
Qualified Charitable Distributions (QCDs) can occur when an individual is 73 or older and makes a tax-free donation directly from a traditional IRA to a 501(c) (3) organization, St. Joseph Catholic School - #81-0634469.
If you are at least 73 this strategy allows you to satisfy your annual RMD obligation without the RMD being included in your taxable income, which may lower your Medicare premiums and surcharges and the amount of your social security payments that could be subject to taxation.
This donation can benefit both you and your grandchildren. Please email advancement@stjosephschool.org for more information or call and speak to Nora Wintrow 770-428-3328 xt 125
Unlike other charitable donations, you don’t need to itemize deductions on your tax return to benefit from QCD. This means you can still take the standard deduction on your tax return. Furthermore, QCD amounts are not deductible on Schedule A if you do itemize your tax return - you can’t count the deduction twice.
Required Minimum Distributions (RMDs) are taxable at ordinary income tax rates when withdrawn from retirement accounts and may be subject to tax penalties if not withdrawn on time.
RMD rules apply to traditional IRA’s, but not ROTH IRA’s or designated Roth accounts.
RMDs from traditional IRA’s, SEP IRA’s, simple IRA’s and retirement accounts generally start at age 73. See Table below:
The beginning age for RMD’s is 75 for those who turn 74 after 12/31/32
DISCLAIMER The above highlights are not tax or legal advice or representations. Please consult your tax/or financial advisor for answers to any questions you may have and to further explore the impacts this may also have on potential Medicare premiums, surcharges and taxability of social security benefit payments.