Charitable IRA Rollover A giving opportunity for those over 70.5

A giving opportunity for those over 70.5

Federal legislation allows you to make "Qualified Charitable Contributions" from your IRA directly to a qualified charity, including ours. This qualified charitable distribution is not included in your taxable income, and the transferred amount can count toward your required minimum distribution.*

BASICS of the Charitable IRA Rollover

  • Donors must be 70.5 or older at the time of the transfer.
  • Distributions must be made (1) directly from the trustee (2) directly to a qualified charity.
  • Gifts up to $100,000 are eligible per individual taxpayer during the current tax year.
  • The gift must be completed by December 31 of the calendar year that the Charitable IRA Rollover is being donated for tax purposes.

BENEFITS

  • The gift qualifies toward the IRA owner's Required Minimum Distribution.
  • This may save taxes: The qualified charitable distribution is not included in the your adjusted gross income, so no taxes are owed on qualified charitable distributions.

ADDITIONAL INFORMATION

  • Is there a charitable text adduction? There is not. The qualified charitable distribution allows the IRA owner to avoid paying income taxes that were deferred when the funds were initially deposited into the IRA. By avoiding that deferred income tax, the tax advantages of this gift would be realized already. Any further benefits are not available, such as a deduction - as it would provide a double benefit.
  • Gifts can NOT be made from 401(k) or 403(b) or other employer sponsored retirement accounts. However it may be possible to conduct a tax-free transfer from these employer-sponsored retirement accounts into an IRA from which a charitable distribution may be made. Your plan administrator may be able to advise you on this possibility.
  • Charitable IRA distributions can NOT be made to charitable remainder trusts, gift annuities or donor advised funds.

NEXT STEPS

  • Consult your tax and financial advisors to ensure that the Charitable IRA Rollover is the right gift for you and that you can make use of the maximum benefits based on your particular financial and tax situation.
  • Contact your IRA custodian and provide them with the basics of your transaction and our organization's name, address, tax ID and any other contact information that will help.
  • Contact us to inform us of the details so that we might help with the process and be on watch for the incoming transfer.

We are grateful for your generosity and want to assist in anyway we can. If you have questions or would like to discuss this gift in greater detail, please contact us:

* Please consult with your qualified professional advisers on how this gift would fit into your overall plans and your eligibility for tax benefits.

Thank you for planning your generosity!

Made with Adobe Slate

Make your words and images move.

Get Slate

Report Abuse

If you feel that this video content violates the Adobe Terms of Use, you may report this content by filling out this quick form.

To report a Copyright Violation, please follow Section 17 in the Terms of Use.