Tax-smart Giving Through Your IRA

What you need to know to take advantage of an important IRA provision


The IRS now requires individual retirement account (IRA) owners to take required minimum distributions (RMDs) from these accounts after they turn 72 years old.

  • Failing to do so may result in penalty taxes.
  • Don’t let this happen to you!

RMDs from an IRA are usually treated as taxable income, which could push you into a higher tax bracket and may even make you liable for the Medicare surcharge.

  • You can avoid this by making a qualified charitable distribution (QCD), also known as an IRA charitable rollover gift, to the Binghamton University Foundation — even if you don’t itemize deductions.

Keep in mind

  • While you don’t have to begin taking RMDs until you are 72, you are permitted to make IRA charitable rollover gifts when you turn 70½.
  • No charitable deduction is allowed for the gift, but the full amount of your QCD will be removed from your taxable income for the year, potentially lowering your income tax liability.
  • The gift must be made directly from your IRA to the Binghamton University Foundation.
  • Gifts to all charities combined cannot exceed a total of $100,000 per taxpayer for the year. (Gifts cannot be made to a donor advised fund, supporting organization or private foundation.)
Donating all or part of your RMD will allow you to benefit from tax savings AND make a difference at Binghamton University. 

We’re here to help

Email Lynne Marie Jones, executive director of major gifts and gift planning, at lmjones@binghamton.edu. Or call her at 607-777-6845.

Don’t forget to consult your tax advisor about your specific tax situation.

Additional gift-planning options are on our website.