If you are 72 or older, you are required to withdraw funds from your retirement accounts each year – what is called the Required Minimum Distribution. These withdrawals trigger income tax. But what if you do not need those funds?
If you would rather not pay taxes on these required withdrawals, and you would like to make a difference in the community, there is a solution!
You can direct the custodian of your IRA account to contribute any amount up to $100,000 to the Mitchell Institute as a “Qualified Charitable Contribution.” The funds will go immediately to the vital work of the Mitchell Institute, and you will not have to declare those funds as taxable income.
If you are reviewing your estate plans, consider leaving all or part of your retirement assets to the Mitchell Institute and other charitable organizations. If you hold traditional qualified IRAs, 401(k)s, or other retirement assets where the income tax was deferred, your heirs will be responsible for paying income tax after they inherit those funds. You would do well to discuss with your advisors how to leave your heirs different assets that are not subject to income taxation, while designating the Mitchell Institute as the beneficiary for a percentage of your retirement funds.
As a charitable organization, The Mitchell Institute would not have to pay taxes on tax-deferred retirement funds. All of your assets would go to work for the people and causes you care about the most.
For more information, please contact Jared Cash, President and CEO of the Mitchell Institute, at jcash@mitchellinstitute.org, or (207) 358-7731.