IRA Rollover

IRA owners ages 70½ and older can make direct gifts to charity.

Eligible IRA owners can direct the custodians of their accounts to send checks up to $100,000 to charity. Although no income tax charitable deduction is available, the distribution is not subject to tax, as it would be if the IRA owner made a withdrawal and then gave the funds to charity. Qualified charitable distributions also satisfy required minimum distributions, providing tax savings.

Congress Encourages IRA Gifts by People Over Age 70½

The qualified charitable distribution allows people ages 70½ and older to instruct IRA trustees to make transfers to charity without incurring taxable income on those amounts.  Up to $100,000 per year can be given in this manner.

No income tax deductions are available for IRA gifts, but IRA donors can still save significant taxes.  In fact, making charitable contributions through your IRA can enable you to increase the size of your gifts absolutely free.

How Does the Law Let Me Increase My Gifts at No Cost?

IRA funds are heavily taxed whenever you draw them out, at rates as high as 37%. What’s more, the tax burden never goes away – even your heirs will pay income tax on IRA funds they receive from your estate, and federal estate taxes may apply, as well — for estates exceeding $11.4 million.

There is a satisfying alternative:  Instead, you can divert the tax collector’s take from your IRA to us.

Gift Ideas with Your IRA

IRA Gift Rules

IRA Gifts Have Special Appeal for:

Are You Too Young for IRA Giving?

For many years, advisers have been telling people that retirement accounts are the very best thing to leave to worthwhile organizations in their estate plans.

People of any age can name us as a partial or 100% death beneficiary of an IRA, 401(k), 403(b) plan, or other retirement account and avoid taxes.  You also can leave your retirement account to a trust that will pay income for life to a spouse or family member, with later benefits for our programs. Contact us for full details.

Copyright © R&R Newkirk. All rights reserved.

The materials contained on this website are intended only to show some ways by which you can make a charitable gift or bequest and thereby minimize federal tax liabilities, as authorized by the Internal Revenue Code. All examples are of a general nature only and should not be applied to your specific situation without first consulting your attorney or other advisers.