Avoiding a Taxing Matter
IRA and Charitable Gifts
The amendment permits tax-free charitable IRA contributions not to exceed a total of $100,000 annually per individual or $200,000 per couple if both hold separate IRA accounts. Donors who have benefited from the un-taxed growth of their IRA now will benefit when making charitable contributions with those funds. Because the donor will not have to recognize income from the withdrawals, their adjusted gross income will be lower, so self-employment and social security taxes will be lower. Other benefits may include elimination of the 3% phase-out of charitable deductions, possible avoidance of the alternative minimum tax, and reduced paper work for those donors who no longer need to itemize their deductions.
Strategy for Donors
Financial institutions administering the IRA will be able to process the donation and resulting paperwork so the donation process should be easy. If you have questions about the IRA charitable giving, please e-mail or call the Center at firstname.lastname@example.org or 301-209-3006. The AIP Center for History of Physics is a 501(c) (3) charitable organization.