Start Planning for Your 2021 IRA RMD Now
Plan ahead
Your support has been invaluable to the Franciscan Friars of St. John the Baptist Province, so we want to share how many of our other supporters are making an impact. This year, making gifts to charity from your IRA is uniquely beneficial for several reasons:
- Required Minimum Distributions (RMDs) are back – and making an IRA gift to a good cause you care about is a simple, advantageous, and beneficial way for you to fulfill your RMD in 2021.
- Tax season is here. Normally, withdrawals from IRA accounts increase taxable income and can increase taxes. However, IRA gifts, also known as Qualified Charitable Distributions (QCDs), are a tax-wise exception to this rule. Your IRA QCD will count against your required minimum distribution, reduce taxable income, help reduce future taxes, and provide tax-free support for the work of our friars.
- Better tax benefit. Most people no longer receive benefits for their charitable donations because they take the standard deduction. IRA Qualified Charitable Distributions provide a better tax benefit than itemized deductions as they can reduce adjusted gross income and future taxes
- Minimum age remains 70 ½ for IRA QCDs. While the SECURE Act raised the age for required minimum distributions to 72, IRA owners who are not yet subject to required minimum distributions can still make IRA QCDs up to $100,000 if they are at least 70 ½ or older.
For more information about making an IRA gift to the Franciscan Friars of St. John the Baptist Province, contact Colleen Cushard, Co-Director, Friar Works, at friarworks@franciscan.org or (513) 721-4700.
Posted in: Estate Planning
