Each year those who are 70-1/2 and older and own an Individual Retirement Account (IRA) must take a Required Minimum Distribution from their IRA. You may transfer an amount directly to The Lewes Historical Society. By transferring a charitable gift directly from your IRA, the amount transferred as a gift is never recognized as income to the taxpayer. A direct transfer will be much better for most donors than a taxable IRA withdrawal followed by a charitable gift deduction.
Qualified Charitable Distribution (QCD): The law permits tax-free distributions to charities from an IRA of up to $100,000 per taxpayer, per taxable year. It is important to remember that this provision only applies to gifts from IRAs and not from 401(k) plans or other tax-favored retirement saving vehicles. Of course, only donors who are sure that they will not need these assets at a later date should consider a charitable IRA transfer. Donors should discuss the IRA transfer with their financial and estate planning advisors before initiating a transfer, to best understand the various tax and estate implications. Due to recent changes in tax laws, individuals should consult their own tax advisers before making a donation.
If you have questions or if you scheduled a transfer and want to notify The Lewes Historical Society about its intended purpose, please contact The Society at (302)645- 7670 or [email protected] Sample language for a letter directing a charitable distribution from an IRA can be seen by clicking here.
Did you know that an anonymous member of the Society took advantage of the IRA Transfer Option and made a $25,000 contribution? Gifts such as these are critical as the Society receives no direct government operating support of any kind.