Give Through Your IRA
When you turn 73, you must take a required minimum distribution (RMD) from your individual retirement account (IRA). A charitable gift is not only a great way to meet this requirement and support your beloved local library, but may also provide tax benefits.
Retirement plans are a major source of wealth for many households. You may have funds invested in an individual retirement account (IRA), a 401(k), or a 403(b). Their primary purpose is, of course, to provide you with income during your retirement. But, IRAs may also be a source of funds for making charitable gifts providing potential tax benefits.
When you reach the age of 73 (the IRS recently increased this from age 70 and 1/2) you must start taking withdrawals from your qualified retirement plans. These are known as required minimum distributions, or RMD, and add to your taxable income. Making a charitable gift directly from your IRA is known as a qualified charitable distribution (QCD) and can be a wonderful option for some households. That’s because it allows you to make a gift without the distribution counting as taxable income, while also satisfying your RMD. Funds must transfer directly from your IRA to Alexandria Library Foundation to provide these potential tax benefits.
How to make a gift from your IRA:
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Contact your IRA administrator to request a qualified charitable distribution.
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Request a distribution made payable to Alexandria Library Foundaiton. You may need this information:
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EIN: 154-1875224
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Mailing Address: 5005 Duke Street, Alexandria, VA 22304
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Request that your administrator send the gift directly to us and include your name and address with the donation. If the check is sent to you from your IRA to forward to us, please do not separate the check from any perforated documentation that may be attached as it provides us with important information to properly record your gift and properly thank you.
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Though not required, notifying us via email that you have initiated a QCD can be helpful.
Don't forget! Name your beneficiaries.
Ensure that you have a plan for all funds remaining in your retirement accounts after your lifetime. Consider naming Alexandria Library Foundation as a beneficiary of a percentage of your account(s). Always consult with your advisor about implications for your own estate, but this may be a way to lower the estate tax and/or income tax paid by your heirs. And, it ensures your values of today live on far into the future.
*Please note, this page provides information, not tax advice. Always consult your advisor or other tax professional about your own personal circumstances.