Did you know you can choose to give up to $100,000 to a qualified charity from your IRA (other than an ongoing SEP or SIMPLE IRA) without counting it as taxable income when you are over 70½ years old? This type of gift is called a qualified charitable distribution (QCD).
A QCD will count towards your required minimum distribution (RMD). However, you can’t claim a charitable contribution deduction for any QCD not included in your income.
Our financial advisors can help you calculate how much you may want to rollover to a Traditional IRA that will generate a QCD equal to the amount you intend to gift each year. You will still have an RMD from your 403(b), but it will be a smaller amount. Give us a call at 1-800-279-4030, Extension 6730 or visit our Financial Planning pages to learn more about QCDs.
P.S. Would you consider using all or part of your QCD to give to WEA Member Benefits Foundation? Visit the website to learn about our new initiatives that support our public school teachers and students.