When Phil Adams, a former CPCC instructor, learned he was required to take a minimum deduction from his IRA account, he decided to transfer a portion of those funds to a charitable interest that was near and dear to his heart CPCC.
His contribution will have a lasting impact on CPCC students, providing them with educational and career training opportunities they would otherwise not have. "By supporting CPCC's Opera Theatre program, for example, I'm able to introduce students to a beautiful art form they can learn and enjoy."
In December 2015, Congress signed into law the Protecting Americans from Tax Hikes Act. This law permanently extends tax benefits for seniors age 70 ½ or older by allowing you to rollover up to $100,000 from an IRA directly to a qualified nonprofit such as CPCC without increasing your taxable income, and the rollover gift satisfies the required minimum distribution for the year.
Benefits of an IRA contribution are threefold:
- You can fulfill charitable year-end gifts from RMD without increasing taxable income.
- These tax-free rollover gifts can be $1,000, $10,000 or any amount up to $100,000.
- Your gift ensures educational opportunities for CPCC students.