Director of Gift Planning
Easton, PA 18042
Goal: Minimize your adjusted gross income while satisfying the annual required minimum distribution from your IRA.
Minimum Gift: Any amount up to $100,000
If you turned 70 ½ years of age before January 1, 2020 or 72 years of age sometime in 2020, you are required to take an annual distribution from your individual retirement account*. The amount of your required minimum distribution (RMD) will be added to your adjusted gross income (AGI) for income tax purposes.
If your philanthropic plans include supporting Lafayette, a direct contribution from your IRA to the College may be the most financially beneficial way for you to make a gift. As mentioned, under normal circumstances, the RMD from your IRA will increase your taxable income. While a QCD is not a tax-deductible gift, it does allow you to avoid an increase to your AGI which may be advantageous to your situation.
Donors turning 70 ½ after January 1, 2020 are no longer required to withdraw assets from an IRA until they turn 72, but they may still wish to make a QCD if they no longer itemize expenses or have reached the maximum for their charitable deductions in a given year.
Donors funding a legacy gift or making their annual fund contribution may benefit by supporting Lafayette through a QCD.
* As a provision of the CARES Act, required minimum distributions from IRA accounts are suspended for 2020.
This information is not intended as tax, legal, or financial advice. Gift results may vary. Consult your personal adviser for information specific to your situation.