If you are age 70 ½ or older, and have a tradition IRA or other qualified retirement plan, consider making a year-end gift directly to CASA from your retirement account. If properly done, the retirement account distribution will:
- Not be included in your taxable income;
- Satisfy your required minimum distribution (RMD) for the year;
- Reduce your taxable income, even if you do not itemize deductions;
- Not be subject to the 50% limitation on charitable gifts; and
- Give voice to the abused and neglected children to ensure their rights are upheld by advancing the mission of CASA.
Although this is a very simple gifting option to initiate with your plan administrator, it is important that the distribution be properly done.
Don’t Wait! This provision of the tax law is only effective for 2013, and as of now, there is no assurance Congress will extend it.
Our thanks to Steven S. Marken of Trustee Services Group for this taxwise tip.
The Colorado Child Care Tax Credit:
The Colorado Child Care Tax Credit allows a donor to receive a 50% tax credit up to the dollar amount of contribution to CASA or eligible organization. M.J. Smith and Associates shares the benefits of the Colorado Child Care Tax Credit in this video: