Save on taxes for your giving at the end of the year
"Life's most persistent and urgent question is, what are you doing for others?" - Dr. Martin Luther King, Jr.
Required minimum distributions suspended
The new law temporarily suspends the requirements for required minimum distributions (RMD) for the 2020 tax year. This probably comes as a relief to many who would have had to withdraw from retirement accounts. Many donors use their RMD to make a gift from their IRA. Despite the RMD suspension, remember that if you are 70½ or older, you can still make a gift from your IRA or name Emanate Health Foundation as a beneficiary.
Why a gift from your IRA may still be a good idea
- Your gift will be put to use today, allowing you to see the difference your donation is making.
- You pay no income taxes on the gift. The transfer generates neither taxable income nor a tax deduction, so you benefit even if you do not itemize your deductions.
- Since the gift doesn’t count as income, it can reduce your annual income level. This may help lower your Medicare premiums and decrease the amount of Social Security that is subject to tax.
New tax incentives
The CARES Act expands charitable giving incentives and allows taxpayers who take the standard deduction to make up to $300 of charitable contributions to qualified charities this year. You might think that this is a small amount and would not make a difference. But what if all of our donors gave “just” $300? Such support would have a huge impact to those we serve in the San Gabriel Valley.
For those who do itemize their deductions, the new law allows for cash contributions to qualified charities, such as Emanate Health Foundation, to be deducted up to 100% of your adjusted gross income for the 2020 calendar year.
For more information, please contact Michelle Stoddard with Emanate Health Foundation at 626.814.2421.