LandWatch is blessed with a diverse membership, but we wanted to give our supporters an option to think about in the future. If you are lucky enough to not need some or all of the required withdrawals from your tax-deferred retirement plan after reaching 70 ½ years of age, we have an option for you.
The penalty for NOT withdrawing after age 70 ½ is 50% of the required withdrawal amount, but did you know that if you meet specific requirements, you can instead donate all or some of the required withdrawals to charity instead and simultaneously reduce your tax bill?
Here are a few considerations:
- There are age requirements and donation maximums.
- Donations are limited to IRAs, but you can roll funds over from a 401(k) to an IRA if you want to make tax-free charitable contributions part of your retirement plan.
- Individuals can take a distribution in whole or in part, and also give some funds to charity.
- The funds must be directly transferred to a charity.
- The charity must be a 501(c)3 organization (which LandWatch is!)
There may be tax advantages and other considerations, so it is essential to discuss this with your tax advisor.
If you are in a situation that makes it possible for you to transfer retirement savings directly to LandWatch, you would hand-down a gift to the next generation. And you would support our efforts to organize residents, improve land use, and create better communities
