By MOAA Staff
If you're over the age of 70½ and have funded an IRA, you might be planning your IRA withdrawal strategy. An important aspect of your plan will be satisfying your required minimum distribution (RMD) each year. For most individuals, these RMDs are taxable income. This additional income can impact tax credits and deductions, including Social Security and Medicare.
A great option to keep the RMD from being taxable income is to make a qualified charitable distribution. This involves a direct transfer by the financial institution to your qualifying charity of choice. For more information, including maximum amounts and timing of transfers, please contact your financial advisor. And remember, the MOAA Scholarship Fund (EIN# 54-1659039) is a qualifying charity.
Through 2017, the MOAA Scholarship Fund has provided more than $140 million in educational assistance to more than 14,000 students since its inception in 1948. The majority of support is provided through interest-free loans.
The Fund, a public charity, is based on MOAA's founding principle that “education is the cornerstone of a strong democracy.” It is supported by donations and bequests from MOAA members, Councils and Chapters, corporations, and others with a desire to help military families.
Top reasons for supporting the MOAA Scholarship Fund:
- All donations go to the children of officer and enlisted military personnel, regardless if they are on Active Duty, Guard, serving in Reserves, or retired.
- 100 percent of donations go to students - 0 percent pays for overhead.
- A charitable donation is tax-deductible - to the full extent of the law.
- Personal information is never given or sold to other charities.
Donors may contribute at any time, through annual giving, and through their estate planning efforts (bequests, wills, trusts, IRAs). MOAA also offers a very competitive Charitable Gift Annuity program for those who want to receive an annual income from their contribution. Participants may donate appreciated securities to eliminate the need to pay higher capital gains taxes.
Contributions are tax deductible under the provisions of 501(c)(3) of the Internal Revenue Code. By selecting the most appropriate gift option, donors may maximize tax deductions while helping students achieve their dream of a college education.