If you are 70 1/2 or older, you can make a tax-free distribution from your IRA.
If you are 70½ or older, you can make a tax-free distribution from your traditional or Roth IRA to Music at Penn Alps without incurring federal income tax on the withdrawal. Distributions can total up to $100,000 annually (we can dream, can’t we?).
HOW IT WORKS
- You direct lifetime distributions from your IRA or ROTH IRA to Music at Penn Alps.
- The distributions go directly to Music at Penn Alps and are not subject to income tax. This means that an appreciated IRA contribution of $10,000 but with a basis value of $5,000 is made to us with no tax consequences to you and is still valued as a $10,000 minimum withdrawal!
A GIFT THROUGH YOUR IRA MAY BE FOR YOU IF:
- You are over age 70½.
- You want to make a significant outright gift to support our music program now.
- Your other charitable contributions for the year have reached your percentage-deduction limitation.
- You have adequate or surplus retirement savings.
- You do not need the additional income necessitated by the minimum required distribution, OR
- Your charitable gifts already equal 50% of your adjusted gross income, so you do not benefit from an income tax charitable deduction for additional gifts, OR
- You are subject to a rule that limits your itemized deductions, OR
- You do not itemize deductions.
- Distributions must be made outright—they cannot fund a life-income gift.
- Gifts can only be made from a traditional or Roth IRA.
- If you have retirement assets in a 401(k), 403(b) etc., you can roll those funds into an IRA and then transfer the funds to Music at Penn Alps.
- You will not receive a charitable income tax deduction, but your gift will not count toward the deduction limitation for charitable gifts.
Please note that Music at Penn Alps cannot render tax or legal advice and we urge you to consult with your professional advisor about your situation before making a charitable gift.