Using your IRA for smart giving
Do you have an IRA account? After saving for years, you may find you don’t need all the funds you’ve accumulated. Or perhaps your account has grown, increasing the amount you must withdraw each year. If so, using a Qualified Charitable Distribution (QCD) to make a direct transfer from your IRA account to the Blue Ridge Community College Educational Foundation might be a generous and tax-smart strategy.
When you make an IRA withdrawal and deposit those funds in your bank account, that amount is part of your taxable income. QCDs aren’t counted toward income, so you don’t have to itemize your taxes to reap the tax savings. Here are some guidelines to keep in mind:
- You can start giving from your IRA as soon as you are 70½ even though you aren’t required to draw on IRA assets until age 72.
- QCDs count toward your required minimum distribution (RMD). Giving more than your RMD is fine, but doesn’t count toward next year’s RMD.
- QCDs are excluded from your taxable income, likely reducing your tax bill.
- Using QCDs, you can give up to $100,000 each year. If you file taxes jointly, your spouse can also give up to $100,000 from their IRA, too.
- Under the tax rules, the first dollars distributed from your IRA are earmarked to satisfy your RMD. It’s smart to make charitable distributions before withdrawing income for yourself.
If you’re not ready or not old enough to use QCDs for giving, there’s still a way to use your IRA to give – and it’s so easy! You can name Blue Ridge Community College Educational Foundation to receive all or a portion of your account upon your death. Making these plans doesn’t change how you can use your funds, and you’ll know that anything left over in your account will help future students build the knowledge and skills they need to thrive.
Let us help
If giving from your IRA sounds like a good strategy for you, let us help. We can provide all the details you need for your gift. And we can make sure your gift is used in the way you want it to be, whether that is for new initiatives, established programs, faculty and staff support or student scholarships. Contact Lisa Adkins at 828-694-1709 or firstname.lastname@example.org to learn more.
Blue Ridge Community empowers individuals with knowledge and skills to enrich our communities and build a competitive workforce.
The Educational Foundation supports this work by generating financial support to further the mission of Blue Ridge. We partner with businesses, individuals, and organizations in our community to help drive student success and fund priority programs and needs as identified by the College’s leadership.