As noted in the previous article, people who are 70½ or older and have traditional IRAs may use them to make charitable gifts in 2020, even though an RMD is not required this year. Both convenient and tax-advantaged, a qualified charitable distribution (QCD) from an IRA allows a donor to direct pre-tax assets to charitable organizations like Bentley without incurring any tax. The charitable distribution is not recognized as income, so donors receive a tax benefit regardless of whether they itemize. Gifts of any amount, up to a ceiling of $100,000 per IRA plan owner per calendar year, may be made this way.

Another reason to consider a QCD is that it can provide a way to reduce the balance in IRAs so that future RMD income may be reduced, minimizing exposure to increased Medicare premiums and other tax issues. 

Please feel free to contact us for additional information about using your IRA to make a gift to Bentley. To ensure that your QCD provides the intended calendar year tax benefits to you, we suggest you initiate QCDs with your IRA administrator by December 1.

Learn more about using an IRA to make a current gift to Bentley