Available Option An individual 70½ years old or older may make a charitable contribution from their annual Required Minimum Distribution (RMD) from their Individual Retirement Account (IRA)
Advantages · Individuals and eligible spouses can make an IRA charitable rollover (up to $100,000) to a qualified charity and not have that transfer count towards their taxable income in the same year that they made the charitable gift.
· Charitable rollover amounts could count toward the client’s required minimum distribution.
· By avoiding the recognition of taxable income, the donor may have less of their Social Security income subject to income tax.
Rules for Using an IRA Charitable Rollover • Individuals have to be 70½ years old or older.
• Rollover cannot exceed $100,000.
• The rollover must be completed before December 31 of the year in which the contribution was to count against taxable income.
• Rollovers could only be made from traditional IRAs. Rollovers from 403(b) plans, 401(k) plans, pension plans, and other retirement plans do not qualify.
• Funds have to come DIRECTLY from the plan administrator to the charity.
• IRA charitable rollovers could not be made to private foundations, supporting organizations, or donor advised funds.
These are generic advantages and rules. Talk with your financial advisor or plan administrator for advantages and rules applicable to your specific situation.”