Support Nature Nearby: All About IRA Qualified Charitable Distributions
Did you know that you can contribute gifts directly from your Individual Retirement Account (IRA) to the Land Conservancy of West Michigan (LCWM) and potentially avoid income and capital gains taxes while protecting West Michigan’s ecologically critical land?
Why consider this kind of gift?
You can use a tax-free IRA Qualified Charitable Distribution (QCD) to make any kind of outright charitable gift, including:
- Making an unrestricted gift to the Land Conservancy
- Making a gift to honor or recognize a friend or loved one
- Making a designated Land Acquisition or Land Protection gift
Your gift will be put to use today conserving your legacy—protecting and restoring ecologically critical ecosystems in perpetuity.
You will 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 does not count as income, it may reduce your annual income level. This may help lower your Medicare premiums and decrease the amount of Social Security that is subject to tax.
Qualified Charitable Distributions can be employed in different ways, depending on your age:
At Any Age
No matter your age, you can designate LCWM as the beneficiary of all or a percentage of your IRA and it will pass to us tax-free after your lifetime. The process is simple and just requires you to contact your IRA administrator for a change-of-beneficiary form or download a form from your provider’s website. If you choose to designate LCWM as a beneficiary, you will become a member of our Circle of Oaks Legacy Society.
For Those 59½ Years Old or Older
If you are at least 59½ years old, you can take a distribution and then make a gift from your IRA without penalty. If you itemize your deductions, you can take a charitable deduction for the amount of your gift.
For Those 70½ Years Old or Older
You can give any amount (up to a maximum of $105,000) per year from your IRA directly to a qualified charity, such as LCWM, without having to pay income taxes on the money. This is commonly called a Qualified Charitable Distribution, but you may also see it referred to as an IRA Charitable Rollover.
For those 73 Years Old or Older
Beginning in the year you turn 73, you can use your gift to satisfy all or part of your Required Minimum Distribution (RMD). RMDs are minimum amounts that IRA and retirement plan account owners generally must withdraw annually after they turn 73.
Making a gift? Let us know!
It is important to let us know of your gift because many retirement plan administrators assume no obligation to notify a charity of your designation. Please let us know if you set up a Qualified Charitable Distribution to benefit the Land Conservancy of West Michigan so we may ensure your intentions are followed.
The information provided here is not intended as legal or tax advice. For such advice, please consult an attorney or tax advisor. Charitable giving options described here are offered only in areas where permitted by law. References to tax rates include federal taxes only and are subject to change. State law may further impact your individual results.