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Posted by Heather Sherwin

Have you heard of the charitable IRA rollover?

September 20, 2018

Foundation News, How To Give

This is the time of year when we are all being asked by local nonprofits for our donations and support.  We wanted to make sure you are aware of a way to give that may benefit you or someone you know. 

Have you heard of the charitable IRA rollover? 

If you’re 70 ½ or older you can use your IRA to make charitable gifts and possibly save on your income taxes.

Charitable IRA rollovers are popular for the following reasons:

  1. Convenience – It is a very simple and easy way to make a gift.
  2. Standard Deduction Benefit – With a charitable IRA rollover, you may take the standard deduction and still receive benefits for your gift. Because the charitable IRA rollover qualifies as your required minimum distribution (RMD), it may reduce your taxes.
  3. Lower Tax on Social Security – By reducing your taxable income, a charitable IRA rollover can also reduce the amount of Social Security taxes you pay. They may also help you avoid the 3.8% Medicare surtax on investment income.
  4. No Giving Limits – With a charitable IRA rollover, you may give more than the usual deductible amount.

Your charitable IRA rollovers this year can be any amount you choose, $1,000, $5,000 or any amount up to $100,000. You can give directly to a nonprofit(s) of your choice or you may establish a charitable fund at Central Carolina Community Foundation to distribute your gifts. 

We are here to answer your questions, feel free to call or email us.  Since each person’s situation is unique, we always recommend that you discuss the benefits of an IRA rollover with your personal professional advisor before making a gift.

Download the IRA Retirement Brochure

Reference

* Council on Foundations, IRA Charitable Rollover, 7/15/17, https://www.cof.org/public-policy/ira-charitable-rollover

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