As the year is coming to an end, we want to talk to you about IRAs and the long-term impact that you can make on the model aeronautics community. RMDs (Required Minimum Distributions) are withdrawals that individuals with IRAs are required to take each year after the age of 72? (70 ½ if you reach 70 ½ before January 1, 2020) Typically, not taking your RMD, or taking less than required, can result in a 50% tax penalty.
Did you know you can direct IRA funds to support nonprofit organizations? QCDs (Qualified Charitable Distributions) are tax-free contributions you can make to a qualified charity, thus saving you money and reducing your taxes. Directing a QCD to AMA not only benefits you, but it makes an incredible impact on AMA charitable programs and initiatives such as STE(A)M education, model aviation club grants, the National Model Aviation Museum, and more.
Benefits of a QCD:
- Avoid taxes on transfers of up to $100,000 from your IRA to the Academy of Model Aeronautics.
- Satisfy your Required Minimum Distribution for the year.
- Reduce your taxable income, even if you do not itemize deductions.
- Make a gift that is not subject to the deduction limits on charitable gifts.
- Help further the work and mission of the AMA.
How a QCD gift works:
- Contact your IRA plan administrator to make a gift from your IRA.
- Your IRA funds will be directly transferred to our organization to help continue our important work. Note: QCDs must be made payable to the charitable organization, not made payable to the IRA account holder.
- When doing your taxes, a QCD gift should not be considered a charitable deduction, because those funds are not income to the individual. If you would like to designate a certain fund or program that is important to you, please contact us at foundation@modelaircraft.org or 1-800-435-9262 ext. 279.
We hope you continue to have a great holiday season!
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