The end of the calendar year is approaching quickly. Have you considered your giving options, and their potential tax implications, as you decide how you want to support Rethos?
Ask your professional advisors about some gifting strategies and deadlines to keep in mind.
Make a charitable donation to Rethos to offset the tax costs of converting a traditional IRA to a Roth IRA.
Investors looking to increase their long term, tax-free investments may have decided to convert all or a portion of their traditional individual retirement arrangement to a Roth IRA. However, when converting assets to a Roth IRA, income taxes on investment earnings and deductible contributions are owed. To help minimize that tax impact, making a charitable donation allows you to support Rethos while offsetting the taxes due on a Roth IRA conversion.
People aged 70 1/2 or older can make a qualified charitable distribution from their IRA to support Rethos.
Individuals aged 70 ½ and older can donate up to $100,000 to qualified public charities (like Rethos) directly from their traditional IRAs as a qualified charitable distribution (QCD). This action can satisfy charitable goals and allows the funds to be withdrawn from an IRA without income tax consequences. For those at least 73 years old, the distribution will count towards satisfying the required minimum distribution (RMD) for that year and the amount donated is excluded from the account holder’s adjusted gross income for tax purposes even if it exceeds the RMD.
To qualify, a charitable distribution must go directly from the IRA to the intended charity. QCDs cannot be made to donor advised funds, private foundations and supporting organizations.
Consider the tax implications of donating different types of assets.
Now is a great time to consult your tax and wealth advisors to determine the best assets to donate to Rethos based on your specific circumstances. A few points to keep in mind:
Cash gifts to Rethos provide the highest charitable deduction for lifetime gifts — up to 60% of adjusted gross income.
Donating appreciated assets offers a tax deduction of up to 30% of adjusted gross income and the opportunity to avoid capital gains taxes at the sale of the asset.
Volatile markets provide unique opportunities to make charitable gifts to offset income and capital gains taxes.
Rethos is a 501(c)3 charitable organization. All gifts to Rethos are tax-deductible to the fullest extent of the law. No goods or services are provided in exchange for your gift. Rethos does not give legal, tax, or financial advice. Please consult your professional advisors for guidance that is right for you.