As you get ready to toast the new year, consider these smart ways to wrap up 2022 on a financial high note. Not only can you save on your taxes, but you can also make a huge impact at Broward College.
Take advantage of inflation.
As we experience rising costs, your own assets may have gone up in value too. It may be time to consider donating those appreciated assets instead of cash. Appreciated assets like stocks create two tax benefits – you’ll offset capital gains and are eligible for a charitable tax deduction on your tax return.
Take advantage of tax savings by making a gift through your IRA starting at age 70 1/2.
Even though you are not required to take a mandatory distribution from your IRA until age 72, direct donations from your IRA are allowed starting at age 70 1/2. These direct donations are called Qualified Charitable Contributions, and you are your spouse can each give up to $100,000 per year. It’s a smart way to give because the earned income is never taxed once the gift is directed to Broward College.
Timing: We must receive your gift by December 31 for your donation to qualify for this year. If you have check-writing features on your IRA, please be aware that your check must clear your account by December 31 to count toward your required minimum distribution for the calendar year.
Take advantage of tax savings for your heirs through IRA beneficiary designations.
For charitable gifts through estate plans, one tax strategy is to designate Broward College as a beneficiary of an IRA, 401(k), or 403(b) account, or to designate a charitable gift to Broward College from your retirement account as part of your will or trust. By giving from your retirement account instead of other assets, like cash, your heirs can save on income taxes.
Help offset the tax liability on a retirement account withdrawal.
If you are 59 1/2 or older, you can take a distribution from your retirement plan account and then make a gift to Broward College without an early withdrawal penalty. If you itemize your deductions, you can take a charitable deduction for the amount.
Timing: If your gift is in the form of a check, it must be postmarked on or before Dec. 31 for your contribution to qualify for this year.
Consider a tribute gift.
Any year-end gift can be made in a loved one’s name. This can be a heartfelt way to celebrate someone important in your life or to remember someone.
The countdown to year-end is on.
As we approach the end of the year, we are happy to help you learn more about how your gifts can make a lasting impact at Broward College as you talk about options with your financial advisor or tax professional. Please contact Scott Rivinius, Associate Vice President of Development at email@example.com or call 954-201-7490 for more information.