IRA Rollover Opportunity

Tax-Free Charitable Distributions from Your IRA

When Congress recently increased the standard deduction, it had the impact of greatly reducing the number of tax filers who will itemize. That means many taxpayers will no longer get a deduction for gifts to charities. While a tax deduction is certainly not the main motivation for our donors, most people do want to receive any potential benefit they may be entitled to. For certain donors, that means making a direct IRA transfer to the Foundation. 

If you are 70 ½ or older, consider having your IRA administrator make a direct transfer (up to $100,000) to the Foundation. The distribution will not be taxed, and there is no deduction for the gift. Not paying tax on otherwise taxable income is the equivalent of a charitable deduction. 

Distributions from employer-sponsored retirement plans are not qualified to make the distributions; nor are 401(k) or 403(b) plans; you may be able to roll over a non-qualified plan into a qualified IRA, and then make the charitable transfer from the IRA directly to the Foundation. 

Contact Jeff Taylor or Kim Matthews if you have questions about making a qualified charitable distribution from your IRA.