Current Giving Opportunity from Your Retirement Plan

The financial commitment of friends like you enables us to boldly look ahead as we seek to serve our Lord. Because of your past support, we wanted to alert you to a very unique opportunity. Did you know that there is a tax free way to transfer charitable gifts to non-profit organizations from your Individual Retirement Accounts (IRA’s)?

This “charitable IRA rollover” allows taxpayers age 70½ or older to transfer up to $100,000 annually from their IRA accounts directly to charity without first having to recognize the distribution as income.

This opens up dependable flexibility in planning and making your charitable gifts each year:

  • The Required Minimum Distribution (RMD) can regularly be paid to the non-profit as a charitable gift and will not be taxable to you. Note: The RMD age has been adjusted to begin at age 72 with the passing of the SECURE Act, effective Jan 1, 2020. Charitable gifts from an IRA can still be made starting at age 70 ½.
  • Gifts up to $100,000 annually, can be paid to charity under this provision.
  • Any IRA administrator can help accomplish this type of giving. The gift recipient needs to be a qualified charity (501c3) or church, and they must receive the gift directly from your IRA. (It cannot first be distributed to you.)

Why give the RMD or other gifts directly from an IRA? The charitable IRA rollover sends pre-tax dollars directly to the charity you care about. You never pay tax on the withdrawal and the charity never pays tax on it either.

The dollars in your checking or savings account are already taxed. It is very often more tax-wise to give IRA funds directly to charity rather than an equal amount from your checking account. Since most seniors do not have enough deductions to itemize on their federal tax return, charitable giving from the IRA makes sense for most—check with your professional advisor to be sure.

Making a gift through the IRA charitable rollover provision is simple. If you have questions or need help, please contact our friends at PhilanthroCorp by calling Susan Wylie toll-free at 800-876-7958 at extension 2125.