How to save on your taxes while helping BNI:
Learn more about QCDs (Qualified Charitable Distributions)
The Bishop Noll success story continues, right through a pandemic, and a big part of that success is attributable to the generosity of our alumni and stakeholders, which helps keep BNI tuition affordable for our families and helps further the work and mission of our school. And at this time of year, as we’re preparing our taxes and planning our tax-related strategies for the next year and beyond, I want to remind you of a way you can continue your support of Bishop Noll while offering tax savings for those over the age of 70-1/2.
“Qualified Charitable Distributions” (QCDs) allow taxpayers over the age of 70-1/2 to make charitable rollovers from their IRAs tax free to a qualified charity. The amount donated also counts toward the Required Minimum Distribution (RMD) you are mandated to take from your IRA every year after turning 72. You are allowed to contribute up to $100,000 per year tax free to qualified charities such as BNI without first having to recognize the distribution as income.
The distribution must be made directly from your IRA to Bishop Noll Institute. In other words, the financial institution that holds your IRA must make out the check in the name of the charity in order for it to qualify as non-taxable. You will need to contact the financial institution that is the trustee for your account and let them know that you want to make a Qualified Charitable Distribution. They will be able to help you through the process.
This tax break only applies to IRA accounts, SIMPLE IRA accounts, or SEP IRAs. If you have a 401(k) account or other qualified retirement account, you first would need to roll this account over to an IRA before you could take advantage of this benefit.
For those of you who have been frustrated by being required to withdraw AND pay tax on your IRA savings, this is a great opportunity not only to help Bishop Noll but also to avoid the penalty of paying tax on your full withdrawal.
As always, we encourage you to contact your tax professional and financial adviser to make sure all rules are followed and to assist you in calculating how much you can save in taxes by using this provision. We are not in a position at BNI to provide tax, financial or investment advice.
However, if you wish to discuss the impact a charitable rollover would make at Bishop Noll, or if you wish your gift to be used for a specific purpose, feel free to contact Director of Advancement Mary Ellen O’Neill at (219) 932-9058, ext. 1002, or at moneill@bishopnoll.org. We are grateful for any consideration you might give toward this method of donation.