Ask Karen

Karen Ecker Kratz Answers Your Questions About Planned Giving

Question:

Is there a way to take a distribution from my IRA without paying taxes?

Answer:

You’ll be happy to know that the answer is yes. Charitable donors who have reached the age of 70½ may transfer any amount up to $100,000 from a traditional IRA directly to a qualifying charity (such as Cincinnati Children’s) without recognizing the distribution as income for federal tax purposes. Doing so may keep you in a lower tax bracket and / or prevent you from losing valuable deductions that are phased out as your adjusted gross income increases. Note that the required minimum distribution rules have been temporarily waived for 2009 because of the economic crisis. Although you don’t have to take a distribution this year, you can still roll a distribution straight to Cincinnati Children’s and reduce your future tax burden.

Please check with your tax advisor for professional guidance and details.

Do you have a question about your planned giving options? Email Karen at karen.kratz@cchmc.org.

Learn more about planned giving.

You can make an impact in the life of a sick child simply by making a gift to Cincinnati Children’s.