DECIDING TO GIVE
A TAX WISE GIVING OPPORTUNITY FOR IRA OWNERS
Donors 70 ½ or older can make a tax-wise gift directly from your IRA to a qualified charitable organization. This gift opportunity is known as the Qualified Charitable Distribution (QCD), and it can have a real impact at FLC.
This opportunity is appealing to many because the IRA distribution does not come to you the taxpayer, so it avoids unnecessarily increasing your taxable income. In addition, the charitable distribution may qualify as part or all of your annual Required Minimum Distribution (RMD), which is the annual withdrawal that you are required to take when you reach a specific age.
IRA Basics
FIRST LUTHERAN LEGACY SOCIETY
Members of First Lutheran Church Legacy Society are those Congregational members and Friends who have named First Lutheran Church in their wills, trusts, or other estate plans.
Simply inform the church (via the Pastor, Church president, Treasurer or member of the Stewardship committee) that you have named or are considering including First Lutheran Church in your will, trust agreement or other estate plans.
If you have questions, any of the above church officials will contact the Funds Management Committee. Members of this committee will arrange to meet with you and explain how the funds are managed.
A charitable bequest enables you to support the mission work and vital services of First Lutheran church in a lasting and meaningful Way.
- Checks payable "First Lutheran Church" Please put in the offering plate or mail to: 1114 Traverse Road, St. Peter, MN 56082
- Direct Deposit Payments can be made on a regular basis. For more information contact Karen at ksmithers@flcstp.org
A TAX WISE GIVING OPPORTUNITY FOR IRA OWNERS
Donors 70 ½ or older can make a tax-wise gift directly from your IRA to a qualified charitable organization. This gift opportunity is known as the Qualified Charitable Distribution (QCD), and it can have a real impact at FLC.
This opportunity is appealing to many because the IRA distribution does not come to you the taxpayer, so it avoids unnecessarily increasing your taxable income. In addition, the charitable distribution may qualify as part or all of your annual Required Minimum Distribution (RMD), which is the annual withdrawal that you are required to take when you reach a specific age.
IRA Basics
- Donors who are eligible must be age 70 ½ or older on the date of the gift.
- The distribution counts towards your Required Minimum Distributions, which is a distribution that IRA owners must take at age:
- 70 ½ if you turned this age on or before December 31, 2019.
- 72 if you turned this age on or after January 1, 2020.
- Gifts up to $100,000 per individual taxpayer are eligible per tax year.
- Distributions must be made (1) directly from the trustee (2) directly to the qualified charity.
- The gift must be complete by December 31 of the calendar year in which the Qualified Charitable Distribution is being made.
- You pay no income taxes on this gift. Since this charitable distribution generates neither taxable income nor a tax deduction, you benefit even if you do not itemize your deductions.
- By lowering your reported annual income, you may find that this helps lower Medicare premiums and may decrease Social Security that is subject to tax.
- The Qualified Charitable Distribution (QCD) qualifies toward the owner's Required Minimum Distribution.
- Is there a charitable tax deduction? There is not. The Qualified Charitable Distribution (QCD) allows the IRA owner to avoid paying income taxes that were deferred when the funds were initially deposited into the IRA. Normally, withdrawals from IRA's are subject to income tax. However, Qualified Charitable Distributions (QCD's) from IRA accounts are not considered taxable income to the donor; therefore, these gifts do not qualify as tax deductions.
- Gifts can NOT be made from 401(k) or 403(b) or other employer-sponsored retirement accounts. However, it may be possible to complete a tax-free transfer from these employer-sponsored retirement accounts into an IRA from which a charitable distribution may be made.
- Qualified Charitable Distributions (QCD) can NOT be used to establish Charitable Remainder Trusts, Charitable Gift Annuities or Donor Advised Funds.
FIRST LUTHERAN LEGACY SOCIETY
Members of First Lutheran Church Legacy Society are those Congregational members and Friends who have named First Lutheran Church in their wills, trusts, or other estate plans.
Simply inform the church (via the Pastor, Church president, Treasurer or member of the Stewardship committee) that you have named or are considering including First Lutheran Church in your will, trust agreement or other estate plans.
If you have questions, any of the above church officials will contact the Funds Management Committee. Members of this committee will arrange to meet with you and explain how the funds are managed.
A charitable bequest enables you to support the mission work and vital services of First Lutheran church in a lasting and meaningful Way.
