Charitable Contributions Case Study

Colleen, who’s 73 years old and is accustomed to donating to her favorite charity – She would normally write a check for $20,000 a year to the charity. We informed her she could take money directly from her IRA and give it to the charity from the IRA and it would qualify as satisfying her Required Minimum Distribution. Instead of paying tax on $20,000, then writing a check to the charity which in her case was no longer tax deductible, she saved thousands of dollars in taxes on $20,000 and the charity still receives their money. If you or someone you know is over the age of 70 ½ and charitably inclined, have them speak to us to see if they qualify to make a Qualified Charitable Distribution from their IRA.

The Pitti Group Wealth Management is not a legal or tax advisor. Be sure to consult your own tax advisor and investment professional before taking any action that may involve tax consequences. This case study is hypothetical and for discussion purposes only. It is not intended to represent any specific return, yield or investment. Individual experiences referenced above may not reflect the future experience of any one client. The planning process discussed may not be suitable for your personal situation, even if it is similar to the example presented. Past performance is no guarantee of future results. Investing involves risk including the possible loss of principal.