Have you considered donating your RMD to the ICD USA Section Foundation? These distributions can give tax breaks and provide a convenient way to support dental projects and programs supported by the ICD USA Section Foundation. Make sure to consult your tax advisor for more information about this donation vehicle.
IRA’s, 401(k)’s or Roth IRA’s (if the owner is deceased) are subject to an annual Required Minimal Distribution (RMD) once the owner reaches age 70 1/2.
The IRA or 401(k) plan account administrator or owner’s financial adviser/CPA will calculate the annual RMD amount that must be distributed.
With no other action, the total RMD amount (amounts, if there are several RMD sources) is provided to the owner by the plan(s). However, the owner may specify that a contribution of all or some of the RMD amount(s) be directly given to approved charitable organizations (such as the ICD USA Section Foundation).
Typically, providing a charitable contribution directly from an RMD provides the following benefits:
- The contribution amount is not considered as taxable income (whereas RMD amounts provided directly to the owner are considered as taxable income).
- Even though the contribution amount cannot be deductible for an itemized deduction tax return, the resultant final tax liability is almost always less.
- For a standard deduction tax return, the resultant final tax liability is almost always less.
- RMD amounts contributed (and not considered as taxable income) may result in the owner’s final tax bracket to be lessened (dropping from a 28% bracket to a 25% bracket), in which case the tax savings is even greater.
- You make a worthwhile contribution without using current funds.
- The gift is immediately available to the charity organization.
- Obviously, the recipient organization is greatly appreciative!
How do you direct some or all of your annual Required Minimal Distribution be given to a charitable organization?
- Determine your total RMD amount from the plan administrator(s) or your financial advisor/CPA.
- Identify how much of your RMD amount you want to go to a charitable organization.
- Have your tax preparer use your identified charitable amount to determine the exact effect on your taxes and determine if the tax benefit is acceptable.
- Have the plan administrator send your specified contribution(s) to the charity organization(s) of your choice.
For a contribution to the ICD USA Section Foundation, the contribution should be designated as follows:
International College of Dentists
USA Section Foundation (501,[c],3)
610 Professional Drive, STE 201
Gaithersburg, MD 20879
Any questions, call Kylie Evans at the ICD USA Section Foundation Office 301-251-8861.