Should you still make IRA gifts in 2020?
Leave a Legacy
Before this year’s CARES Act waived required minimum distributions (RMD), IRA owners over 70 ½ could support their favorite charities with a qualified charitable distribution (QCD) and lower their income taxes. But should you still make an IRA gift to charity at year-end if you are not taking your RMD?
• If you will itemize your deductions in 2020, consider making year-end charitable gifts from other sources. For smaller gifts, it is easy to donate from a checking account. For larger gifts, donating appreciated stocks or mutual funds can be tax advantageous.
• If you do not itemize your deductions in 2020, an IRA gift to charity can still be a good option. While an IRA QCD made this month will not lower your taxable income for 2020, you will still be giving away pre-tax dollars completely tax-free to a cause you care about.
Your IRA QCD must be made directly to a qualified charity from your IRA. Contact your plan administrator to initiate and confirm the timing of your QCD.
This is not intended as tax advice. Please consult with qualified professionals before making an IRA QCD.
Posted in: Estate Planning