When a single gentleman in his mid-seventies was looking for a way to be more generous, he discovered an opportunity to make a significant gift each year from his Individual Retirement Account (IRA) that would decrease his income tax liability and provide a substantial investment in our ministry at Central. Perhaps you or someone you know is a good candidate to use your IRA to benefit Central Christian College of the Bible or other ministries.
If you have diligently saved for retirement in an Individual Retirement Account (IRA), you already know the benefit of having funds grow tax-free. During the tax year you turn 70 ½ years old, you must withdraw a required minimum distribution (RMD). If one or both spouses receive sufficient income, your RMD may not be needed for living expenses, but is still subject to income tax. To encourage generosity to charities in the United States, Congress in 2015 permanently approved an opportunity for older adults to make a Qualified Charitable Distribution (QCD) from their IRA. (IRS.gov/pub590b)
You qualify to make a QCD gift from your IRA if you are over 70 ½ years of age. Keep in mind these benefits:
• You avoid taxes on transfers of up to $100,000 from your IRA to CCCB.
• Your required minimum distribution (RMD) for the year is satisfied by your gift to CCCB.
• You reduce your taxable income with a QCD gift, even if you do not itemize deductions.
• Your QCD gift is not subject to the normal 50% deduction limits on charitable gifts.
• Your QCD gift helps further Central’s work of developing servant-leaders for the church.
Should you consider making a similar gift, keep these rules in mind:
• You must be at least 70 ½ at the time of the transfer.
• Married couples must each transfer from their own accounts.
• Your gift must be a direct transfer, not through a foundation, donor-advised fund, or
charitable gift annuity.
• These gifts only apply to pre-tax amounts in personal IRAs, Roth IRAs, and inactive SEP
and SIMPLE IRAs.
• The gift can be any size from $100-$100,000.
• A gift can be made every tax year to meet the RMD requirement.
To learn more about how you can use your IRA to make a gift to Central Christian College of the Bible, please contact our Vice-President of Business & Finance, Lara Lawrence (email@example.com). She will be happy to assist you and answer any questions you might have.