In a few short years, LLI has become an important part of the quality of life for retirees in the New River Valley and an effective outreach program for Virginia Tech. Your support will allow the LLI at Virginia Tech to grow this important community resource. The Lifelong Learning Institute is an entity of the Division of Outreach and International Affairs at Virginia Tech. All gifts to LLI (excluding membership and course/event-related fees) are fully tax deductible to the extent allowable by law. Designated gifts are received and managed by the Virginia Tech Foundation for the purpose of growing and sustaining the Lifelong Learning Institute.
With the 2018 tax changes many tax payers who have itemized deductions of less than $24,000 will no longer be able to take advantage of the tax deduction for charitable gifts. However, for those over 70 1/2, with IRAs, who are taking Required Minimum Distributions (RMD), there is a strategy which will allow them to continue getting a tax benefit. This is called a Qualified Charitable Contribution (QCD).
Using a QCD you can transfer up to $100,000 per year from an IRA directly to a qualified charity. This is only available to those who have reached RMD age (70 ½). Any amount processed as a QCD counts toward your RMD and reduces the taxable amount of your IRA distribution. This lowers both your adjusted gross income and taxable income, resulting in a lower overall tax liability.
In order to do this, the contribution must be made directly to the charity and you will need to contact the custodian of your IRA to get the appropriate forms to do this. Also, you should check with your tax advisor to make sure there are no issues that apply to your specific situation, and also to advise them to report this QCD on your tax return for the year the contribution is made.