Margaret was a retired librarian. She volunteered at her favorite charity several times a week and also made several donations to the charity each year. Margaret saw that her taxes were increasing and wondered how she could continue to do extra things like make charitable gifts with lower income.
Margaret: I have been fortunate that I could make gifts to charity every year. My financial advisor told me that because I was turning 72 this year, I would have to begin taking distributions from my IRA. He also told me that because my income was increasing, my tax rate would too.
I started looking at ways to save money and reduce my taxes. I talked to my favorite charity and learned that I could reduce my income and my taxes by transferring money directly from my IRA to charity.
Individuals age 70½ and older may make gifts directly from their IRA to a qualified charity. Individuals age 72 and older must take "required minimum distributions" from their IRA each year. With the IRA charitable rollover, these individuals can transfer up to $111,000 per year directly to charity and it satisfies the required minimum distribution.
Margaret called her IRA custodian and requested a transfer of $10,000 from her IRA directly to our organization.
Margaret: I knew that I would never use all of the money in my IRA. I was thrilled to learn that a gift from my IRA could reduce my income taxes this year while helping my favorite charity.
Is an IRA rollover gift right for you?
Have you calculated what your IRA required minimum distribution will be this year and how it will affect your taxes? If you have questions about how you can benefit from an IRA rollover, please feel free to
contact us.
*Please note: The name and image above are representative of a typical donor and may or may not be an actual donor to our organization.
