Daniel was a retired businessman who volunteered for our organization. When we decided to add a new program, he was excited to help in a significant way.
Daniel: I really wanted to make a larger gift than normal, but I had questions about the best way to fund my gift. I was also concerned about conserving my cash resources for the future.
Daniel learned about the possibility of using his IRA to make a gift for this program. Because Daniel was already over 72, he could take advantage of the IRA rollover option this year and make the gift to us directly from his IRA.
Daniel: I knew that I didn't really need all the income from my IRA this year. I had enough income from sales of my investments to cover my living expenses.
Daniel decided to rollover $55,000 from his IRA to our organization. He was able to continue to make his normal charitable contributions in addition to the IRA gift without exceeding federal limits.
Daniel: I was thrilled to discover that I could transfer money from my IRA to charity without paying any federal income tax. The fact that my gift qualified for my required minimum distribution amount was an added bonus!
Is an IRA rollover right for you?
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.
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.
