by Lisa Durham, ANSWER Administration Assistant
ANSWER appreciates a donation in any form!
Will you be 70 1/2 by the end of the year?
You will need to take a “Required Minimum Distribution” from your traditional IRA, 401(k) or similar retirement plan and pay income tax on the distribution. OR, you could have your distribution (or a portion of it) donated to ANSWER and not pay income tax. See your financial planner or tax adviser for details.
Do you have stock that has appreciated?
Suppose you bought stock for $1,000, and it’s now worth $2,000. If you have your broker move the stock to ANSWER, you can claim a $2,000 itemized deduction and you will not pay tax on the $1,000 dollar gain! (The broker cannot sell the stock and have you contribute the cash–the asset has to be transferred to ANSWER directly.)