• President's Message

    Welcome to the Lewiston-Porter Alumni Association!

    Formed in 2007, our purpose is to enhance student learning opportunities at our alma mater and bring alumni together for social and professional enjoyment. As of 2015, the Lewiston-Porter Alumni Association (LPAA) has refreshed our original website. This refresh will be an on going process; so please come back to this site frequently to watch our progress.

    Bruce Newton '65
    President, Lew-Port Alumni Association


     
      
    LPAA Updates

    Nov. 5, 2018

    Possible Tax Advantage in Making a Donation to the LPAA

    If you are Lew-Port alumni over the age of 70 1/2, you might find these points attractive from an income tax view. It's always the Alumni Association's goal to raise more capital to support / enlarge our Scholarship and Mini-Grant programs. If you would like more information, please contact me through email at Vitaminbruce@aol.com.

    Before making any donation, you should consult your accountant or tax specialist.

    1. The tax laws require taxpayers, who have reached 70.5 and own an IRA, take RMDs annually. These distributions are normally taxable. You may avoid the tax on your RMD to the extent that you make gifts directly from your IRA to a 501(c)(3) charity that meets the requirements for a Qualified Charitable Distribution (“QCD”). Although there will be no additional charitable deduction when the standard deduction is being claimed, the same tax benefit will be received by avoiding tax on the RMD.

    2. To eliminate or reduce the impact of RMD income for an individual over 70.5, charitably inclined investors may want to consider making a qualified charitable distribution (QCD). A QCD is a direct transfer of funds from an IRA custodian, payable to a qualified charity, as described in the QCD provision in the Internal Revenue Code.

    3. Up to $100,000 of your annual RMD from IRAs may be distributed directly to a 501(c)(3) public charity, enabling you to avoid paying income taxes on that amount. This option is known as a qualified charitable distribution (QCD).

    4. Nearly two years ago, Congress did something they generally don’t … they made a decision that actually benefits savers! Did you know that if you’re over the age of 70.5 and are the owner of a traditional IRA, you can use your required minimum distribution (RMD) to help support your favorite charities? Through what’s known as a Qualified Charitable Distribution, those who qualify can avoid paying income tax on the amount of the IRA distribution if it is sent directly to the charity.

    For many years, Congress waited until December before extending this provision, but in 2015, lawmakers decided to make this a permanent feature of the tax code.

    Here are the details:

    • Must be age 70.5 or older.
    • Must have a traditional IRA (can’t be done out of a 401k account).
    • You can donate up to $100,000 per year directly to a non-profit organization from your IRA account.
    • In doing so, you will avoid paying ordinary income tax on the amount of the distribution.
    • Doesn’t have to be all to one charity or in one lump sum.
    • Can be done anytime during the year.