The Charitable IRA Rollover is a way for donors age 70 ½ and older to pay less tax while supporting their favorite charities. A Charitable IRA Rollover allows donors to direct up to $100,000 from their traditional IRA to charity tax-free.
Overview: Charitable IRA Rollover
A Charitable IRA Rollover allows donors to direct up to $100,000 from their traditional IRA to charity tax-free. A Charitable IRA Rollover counts toward the Required Minimum Distribution, the amount a person over 70½ years of age must withdraw from an IRA each year.
Traditional IRA funds are not subject to income tax when given directly to charity. But if the IRA owner receives a distribution from the IRA, it is treated as income and taxed. Therefore, the Charitable IRA Rollover is a way for donors to pay less tax while supporting their favorite charities.
This strategy may be right for you if:
- You want to make a qualified charitable gift from your IRA to reduce the value of future distributions you will be required to take
- You do not itemize your deductions and would like to realize an increased tax benefit for your giving
- You wish to make an impactful gift to benefit the community
- You already contribute to charity at your deduction limit, and you want to donate more
- You wish to remove up to $100,000 from your taxable estate
A Charitable IRA Rollover may not be directed to a donor-advised fund, but there are several ways to give through the Charitable IRA Rollover, such as to direct dollars to a specific nonprofit organization, unrestricted funds, field of interest funds or other designated funds. Our Foundation professionals will happily work with you to structure your Charitable IRA Rollover to achieve your desired impact.
