COMMUNITY
W H AT ' S H A P P E N I N G I N N O R T H E A S T F LO R I DA
A TAX-SAVING WAY TO START YOUR LEGACY By Kellie Smith, Jewish Foundation Director Jewish Federation & Foundation of Northeast Florida
Are you a charitably minded senior with a traditional Individual Retirement Account (IRA)? Struggling with your Required Minimum Distribution (RMD)?
Many people know they can deduct donations to charity from their income taxes but increasing your knowledge of tax planning strategies with retirement funds can help to maximize your giving impact as you age.
If you are 70½ years or older, one of the easiest ways you can make a difference is by giving directly from your IRA to a qualified charity, such as the Jewish Foundation, which allows you to pay no income taxes on the gift. The transfer generates neither taxable income nor a tax deduction, so you benefit even if you do not itemize your deductions. Since the gift doesn’t count as income, it reduces your annual income level. This may help lower your Medicare premiums and decrease the amount of Social Security that is subject to tax.
Gifts of any value, up to a maximum of $100,000, are eligible for this benefit. This popular gift option is commonly called the IRA charitable rollover, but you may also see it referred to as a Qualified Charitable Distribution (QCD) and many choose to use that pesky RMD to get it started! Beginning in the year you turn 72, you can use your gift to satisfy all or part of your RMD.
One example of optimizing the use of QCD is to establish a perpetual Endowment Fund. By making a QCD donation to an endowment with our Jewish Foundation, you are creating a lasting legacy by investing in your Jewish community for generations to come. Contributions can be made to your new endowment fund at any time during your life or after your passing. By utilizing these giving strategies, you can make a difference and save on your taxes. Your gift will be put to use today, allowing you to see the difference your legacy is making in life, while helping to secure Jewish tomorrows in Northeast Florida long after you’re gone. We want to help you create your own Endowment Fund and maximize your giving impact! Contact Kellie Smith, Foundation Director, at (904) 512-3796 or by email KellieK@jewishjacksonville.org. 4
