If you're age 70½ or older, you can now use your IRA to make charitable contributions to Knox College until December 31 without your withdrawals being counted as taxable income...less taxable income means less tax paid!
How Your Gift Can Qualify
For your IRA withdrawal to qualify as a tax-free gift:
What Does This Mean for You?
Say you have $500,000 in an IRA and are required to withdraw approximately $25,000 this calendar year. You can authorize the administrator of your IRA to transfer all or a portion of the withdrawal to Knox. Qualified distributions can total up to $100,000 for the tax year 2013. If your spouse has a separate IRA account, you may each contribute up to $100,000. You cannot claim a charitable deduction for IRA gifts because the IRA distribution is not included in your income calculation. However, you may not need a deduction-as your IRA gift will have effectively saved you between 15% and 35% in income taxes (based on your tax bracket).
Make Your Gift Today!
The current IRA Charitable Rollover provision expires on December 31, 2013, so the time to act is now. If you have questions, e-mail Bob King, senior director of gift planning, or call him at 309-341-7459 or toll-free at 888-566-9265.