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Another Smart Use of Your IRA

By October 31, 2019 December 23rd, 2021 No Comments

Late last year, Congress made the IRA charitable rollover permanent. The rollover law allows taxpayers who are required to withdraw money from their IRAs to give directly to charity. Because the rollover counts against your required minimum distribution (RMD), making an IRA rollover gift to an organization like ours could reduce your income and taxes.

The IRA rollover is a great way for you to help support your favorite causes. While you won’t receive an income tax deduction for a rollover gift, you also won’t pay any income tax on the transfer.

The transfer only works for IRAs and not other retirement accounts. You may be able to roll over your 401(k) or other plan into an IRA and take advantage of this strategy. Check with your tax advisor or contact us to learn more about how you can use your RMD for good and lower your taxes.

 

Here are some of the requirements for making an IRA rollover gift this year:

  • You must be age 70½ or older.
  • You must transfer money directly from your IRA to a qualified charity.
  • You can give annually up to $100,000 from your IRA.

 

If you have questions about making and IRA rollover gift, or would like more information, please contact one of our development officers!

You can also find more information on our Planned Giving webpage.