To-Dos Before the Year Ends
Check These Charitable Items Off Your List
The end of the year is a time of reflection and anticipation. It is also a time of deadlines. Here are some important charitable considerations ahead of the last day of December.
Smart Year-End Charitable Giving
IRA Distribution
- If you are 59½ or older, you can take a distribution from your IRA and then make a gift to the VFW without penalty. If you itemize your deductions, you can take a charitable deduction for the amount.
- If you are 70½ or older, you can give any amount up to $100,000 from your IRA directly to the VFW. You will not pay income taxes on the transfer. If you are 72 or older, you can use this transfer to satisfy your required minimum distribution. (Note: The RMD requirement has been waived for 2020, per the CARES Act signed into law on March 27, 2020.)
To do: We must receive your gift by Dec. 31 for your donation to qualify this year. If you have check-writing privileges on your IRA, please mail your check by Dec. 18 to allow time to process your gift.
Appreciated Stock
You may enjoy two tax benefits with a gift of appreciated stock: Avoid paying taxes on the appreciated value, and qualify for an income tax charitable deduction based on today’s market value, when you itemize.
To do: Complete all transfers by Dec. 31. This includes electronic transfer, hand-delivery of the securities or mailed stock and stock power (mailed separately for security).
Donor Advised Fund
Contribute to a donor advised fund and enjoy a tax savings on that amount when you itemize.
To do: Complete the contribution by Dec. 31. You do not have to designate the funds this calendar year to receive the tax benefits.
Good End-of-Year Planning
Check these off your to-do list to end the year on an organized note.
- Update your will or living trust. Ensure that your designations are still appropriate and your charitable intentions are noted.
- Review your retirement plan beneficiaries. Assess your named beneficiaries to ensure you have considered your loved ones and favorite causes.
- Review your life insurance policy. If you have a policy that is no longer a significant piece of your estate plan, consider making a gift by assigning ownership to the VFW or making us the beneficiary.
As we approach the end of the year, we are happy to help ensure that you realize the most tax benefit. Please feel free to contact the VFW Planned Giving Office at 816.968.1119 or plannedgiving@vfw.org for free resources.