Charlie ThacherOur generous friend and Board of Trustees Member Charlie Thacher chatted with us to share how he uses his IRA to support Walnut Hill. Charlie says, “Since we turned 70½, my wife and I have always made charitable contributions directly from our IRAs, which count toward our required minimum annual distributions. This provides a very substantial financial benefit (compared to receiving the required minimum IRA distributions and contributing personally to charities). In most years, we can save a lot by reducing: the taxes on our Social Security benefits, the Medicare premium surtax, the alternative minimum tax, and the 3.8% tax on net investment income. Anyone over age 70½ should evaluate the option of making charitable contributions directly from their IRA. But remember, the charitable contributions must be made from your IRA by December 31 to avoid penalties.”

You can do this by instructing your IRA administrator to give all or part of your required minimum distribution to one or more of your favorite charities (Walnut Hill being number one). With the 2018 change in the tax law, it makes more sense than ever to make use of this giving vehicle to reduce your adjusted gross income and pay less in taxes.