By Hannah Amos
 
While you’re already thinking about taxes and finances this time of year, don’t forget to think about your charitable giving capabilities. Springtime can be a great opportunity to create a lasting impact and change for our servicemembers, veterans, and their families.
 
If you’re navigating retirement accounts and inherited IRAs, then required IRA distributions can be an opportunity to make an enduring impact on those in need.

To make this lasting difference, consider the American Legion Auxiliary Foundation. 

Individuals who inherit an IRA may be required to begin taking distributions immediately. If that’s not the case, at age 72.5, account holders must begin required minimum distributions (RMDs).

These distributions are typically considered as taxable income. Required distributions can increase taxable income if not planned thoughtfully.

If the distribution income is not needed for living expenses, a smart strategy to satisfy the RMD without it counting as taxable income is to directly transfer funds from the IRA to eligible qualified 501(c)(3) organizations like the ALA Foundation. 

You can also extend your legacy through beneficiary designations, like naming 501(c)(3)s as a full or partial IRA beneficiary.

Beneficiary designations also have the added benefit of simplicity. These designations are often easier to update than a will. 

These designations provide a solid and sustainable support for veteran-focused programs. Planned gifts help ensure the mission continues for future generations.

As stated, these donations will aid veterans, military, and their families, enabling the ALA to continue providing support and opportunities for them.

The funds that support ALA programs like the Mission Endowment Fund would not be possible without the kind and selfless support these donations provide.

Speak with your financial advisor or tax professional to see what your charitable capabilities are. Consider making a current IRA distribution gift and/or naming the ALA Foundation as a beneficiary.

These are just a few ways to continue supporting the ALA mission and our legacy of Service Not Self.
If you have questions, please reach out to ALA National Headquarters’ Development Division staff at development@ALAforVeterans.org for a confidential conversation.