Denise Gibson: IRA gifts can make big impact

April 17, 2017 in From Denise's Desk Harvest Time Newsletter

Denise 10Have you heard of the great opportunity for those who are over age 70 1/2? You are able to make tax-free charitable gifts from your IRA to fulfill your minimum distribution requirement!

IRA tax-free charitable contributions have been a temporary feature of IRAs since 2006, but they have become permanent thanks to a 2015 appropriations bill. Now is a great time to take advantage of this opportunity to avoid being taxed on the minimum distribution requirement placed on those ages 70 1/2 and older.

There are several ways a gift from your IRA may lower your income taxes. It could reduce the amount of tax you pay on social security income, help you avoid the annual limitation of your total deductible or decrease the 3.8 percent Medicare surtax on your other income.

I know there are many charities to choose from when deciding where to donate your money. Here at The Food Bank, we are able to make a big impact on the lives of 261,000 children, adults and seniors in southwest Missouri with your donation.

In addition, every $1 donated to Ozarks Food Harvests is stretched to $10 worth of food and distribution services.

If you would like to use your IRA funds to help your neighbors in need, please contact your financial, tax or legal advisor to find out if using tax-free charitable contributions could benefit you. It would certainly benefit us as we work to solve hunger in the Ozarks!

Denise Gibson is the director of Development and Communication at Ozarks Food Harvest.