Remember when you were young, and someone would ask you how old you were? “Seven-and-a-HALF” you’d proudly reply.
It’s probably been a while since you added in the “half” to your answer, but if you’re over the age of 70 ½, you can make a charitable contribution directly from your IRA to a fund at Galesburg Community Foundation tax free. If you’re 73 or older, this gift will count toward your required annual minimum distribution.
Steve Medhurst got a letter from his financial advisor, Dan Butler, reminding him that he had reached the age where he needed to make a required annual minimum distribution from his IRA. If he didn’t make the distribution, there would be a significant tax penalty. “He told me that we were going to have to start spending some money,” laughed Steve.
Steve and his wife, Doris, consider themselves financially comfortable and when Dan mentioned that they may want to consider allocating the distribution to local charities, the couple started looking at where the greatest needs were in the community. “There are lot of things we’d like to give our money to, so we started making a list and met with the Community Foundation to learn more about our options.”
In the end, the couple chose to give half of the annual distribution to their church and distribute the other half to local nonprofits.
One of those nonprofits is Christmas in Action. “They help individuals who are disabled and senior citizens remain in their homes by providing repairs at no cost to them,” said Doris. The couple has volunteered for the organization for many years and currently serve on the nonprofit’s board of directors.
“We have so much need in our community,” says Doris. “We have been blessed to be able to live comfortably. We don’t need that money. We’d rather share it with community organizations and people who do.” To learn more about Qualified Charitable Distributions and how you can use this easy, tax-smart way to support the causes you care about, reach out to Sarah Grant at info@yourgcf.org or 309.344.8898.
