When we think of making a charitable gift, our checkbook is often the first thing that we take out. There are other options, of course. If you’ve reached age 70 1/2 or older, your IRA might be a new source for your philanthropic gifts.
By using a Qualified Charitable Distribution, you can make a gift directly from your IRA to Christian Living Communities. A simple letter of instruction is all that’s needed, and, as an added benefit, a QCD can also fulfill your Required Minimum Distribution for the year.
A direct transfer of IRA funds to CLC would not produce a charitable income tax deduction, but you also would not pay income tax on the distribution. Keeping your taxable income lower may reduce the impact to certain tax credits and deductions including Social Security and Medicare.
Instead of reaching for your checkbook, perhaps consider whether a Qualified Charitable Distribution might make more sense. It’s always best to consult with your tax advisor before making any gifts involving IRA assets.