Roll over funds from your IRA to make a gift to the Y
Published: October 18, 2017, at 10:13 a.m. PT
Last updated: October 19, 2017, at 2:25 p.m. PT
DID YOU KNOW YOU CAN ROLL OVER FUNDS FROM YOUR IRA TO MAKE A GIFT TO THE Y
The IRA charitable rollover is now a permanent tax law! The permanent IRA rollover allows people age 70½ or older to make direct charitable gifts (up to $100,000 for an individual or $200,000 for a married couple) from an IRA. The amount given to charity will count toward your minimum required distribution, but does not increase your taxable income.
YOU SHOULD CONSIDER AN IRA ROLLOVER IF:
• You take the standard income tax deduction rather than itemizing deductions.
• You do not need the income from the required minimum distribution.
• The additional income from your RMD (required minimum distribution) would result in taxation of your social security benefits or a change in your income tax bracket.
• You would be unable to take other deductions (such as for medical expenses) due to the increased income.
• You have maximized your charitable deductions and/or are subject to the 3% limitation on itemized deductions.
• You are planning to give the IRA to charity anyway.
To make a gift, please consult with your financial advisor. Thank you.