Charitable IRA Rollovers Especially Beneficial in 2018

senior-man-working-with-retirement-planner-woman

If you’re age 70½ or older, you can make direct contributions — up to $100,000 annually — from your IRA to qualified charitable organizations without owing any income tax on the distributions. This break may be especially beneficial now because of the Tax Cuts and Jobs Act (TCJA) changes that affect who can benefit from the itemized deduction for charitable donations.

You may transfer up to $100,000 from your IRA directly to McCrossan Boys Ranch without owing income taxes. Here is how it works:

If you are 70 ½ or older, you can give up to $100,000 directly from your IRA. A husband and wife can each give up to $100,000 from their own IRA’s.

  • Your rollover gift must be made directly to McCrossan Boys Ranch from your IRA. So, your IRA administrator must cut a check payable to McCrossan Boys Ranch.
  • The gift must come directly from a traditional or Roth IRA. You cannot transfer the rollover cash to yourself or to a non-IRA account prior to the gift.
  • You can rollover cash tax-free from another qualified retirement account to an IRA then make a rollover gift to McCrossan Boys Ranch if you wish and time permits.
  • Be sure to inform McCrossan’s of your gift so that we will know the rollover is from you!
  • The charitable rollover generates neither taxable income nor a tax deduction, so you still benefit even if you do not itemize your tax deductions. It may even lower the donor’s income tax rate.
  • If you have not taken your required minimum distribution (RMD) for the year, your IRA charitable rollover gift can satisfy all or part of the RMD requirement.
  • Your IRA charitable rollover may fulfill a pledge or be donated to an endowment.  However, you cannot rollover to a gift annuity, charitable remainder trust, donor advised fund or private foundation.

For more information, check with your tax consultant, or contact Christy Menning, Development Director, at McCrossan Boys Ranch at (605) 339-1203 or email christy.menning@mccrossan.org

 

Leave a Reply

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>