Plan Your Legacy

Did you know that you (and your IRA) can benefit Murphysboro District 186 Education Foundation and perhaps get a nice tax deduction to boot?

Current IRS rules allow what is known as a Qualified Charitable Distribution (QCD) directly from your IRA to Murphysboro District 186 Education Foundation. Since we are a recognized 5O1(c)(3) charity, this distribution will not be taxed by IRS, and can be used to satisfy the IRS annual required minimum distribution requirements. You must be at least 70½ to utilize the QCD. The distribution must go directly to the Foundation and cannot pass through your hands to qualify.

This provision is especially useful since the enhanced standard deduction amounts went into effect in 2017. Those larger standard deductions mean that fewer people than ever actually itemize deductions. This method is a way to take advantage of what otherwise might be a wasted tax deduction. The beauty of this tax provision is that you no longer have to distribute the money from your IRA to yourself and then send the money to the charity. In that scenario you have to recognize income and may not be able to take the itemized deduction. The QCD eliminates that unfavorable outcome.

If you have an IRA account and would be interested in such a transaction, contact us. We can give you specific information that your IRA trustee would need to complete the distribution. Of course, please consult your tax advisor as well.