As December 31 approaches, we want to share with you a few of the best ways to make a tax-smart gift in 2022 to support the School of Medicine. Your gift can help us fulfill our important mission of preparing healers and transforming health.
Take Advantage of Inflation
The price of everything seems to be going up! If you own assets such as real estate or publicly traded stock, that have gone up in value too, this can also increase your capital gains taxes. However, when you donate those appreciated assets, you avoid paying those taxes.
NOTE: For our friends that typically gift publicly traded stock to support the School of Medicine, please note that recently we have changed financial institutions. Now, gifts of stock can only be sent to our new financial institution. Please contact me if you want to receive the new transfer instructions.
Take Advantage of Higher Interest Rates
Interest rates have gone up. You can lock in these higher rates for life with a Charitable Gift Annuity (“CGA”). This gift pays you income for life. Donors receive fixed annual payments and a generous charitable tax deduction while supporting the School of Medicine. Higher interest rates make the charitable deductions even larger than before. (For an extra tax benefit, you can fund a CGA by giving appreciated assets instead of cash.)
NOTE: To receive a personalize CGA tax illustration, please contact me by phone or email.
Make IRA Gifts at Age 72+
Those age 72+ must take RMDs (Required Minimum Distributions) from their retirement accounts like an IRA. These distributions count as taxable income. But giving directly from your IRA to the School of Medicine does not count as taxable income. Also, because it never shows up as income it can help keep Medicare Part D payments lower. This direct transfer is called a QCD (Qualified Charitable Distribution). It’s a tax-smart way to support the School of Medicine!
Make IRA Gifts at Age 70.5+
Even though RMDs don’t start until 72, direct donations to charity from your IRA are allowed starting at age 70.5. After you turn age 70.5, you can give up to $100,000 per year this way, even if you are not currently required to take RMDs. This earned income is never taxed because it goes directly to support the School of Medicine!
If you have any questions or if I can help in any way, please do not hesitate to contact me at email@example.com or at (317) 274-0187.
The views expressed in this content represent the perspective and opinions of the author and may or may not represent the position of Indiana University School of Medicine.
Tim W. Ueber
Tim W. Ueber is the Director of Planned Giving. Tim joined the Office of Gift Development in 2012. He is responsible for directing all planned giving activities, building donor relationships, and working closely with donors to help them achieve their philanthropic goals. Additionally, Tim guides activities for the Planned Giving Committee and the J.O. Ritchey Society.