If you are over 72 years old and have a tax-deferred retirement account, Uncle Sam is eager for you to begin making taxable withdrawals. At age 72, you have no choice—you must begin making withdrawals, and he tells you what the minimum is that you must withdraw. (It is called a Required Minimum Distribution.)
The deadline for making your annual Required Minimum Distribution withdrawal is approaching swiftly. Many people make that taxable withdrawal, then turn around and donate it to their favorite ministry, such as Adventist World Radio. A better way of doing it is to make that gift directly to Adventist World Radio without doing a taxable withdrawal: in other words, have it sent straight to Adventist World Radio and not have it pass through your hands. This method is called a Qualified Charitable Distribution, and it’s a very wise way to make a gift from your tax-deferred account.
NEW this year is your ability to do a Qualified Charitable Distribution, but instead of it being an outright gift, it can go to fund a Charitable Gift Annuity. Then you will receive a payment back again for the rest of your life! How would you like to turn that Required Minimum Distribution into several thousand dollars per year coming back to you for the rest of your life?
If this sounds interesting, please contact AWR’s planned giving specialist, Bill Hay.