IRA Charitable Rollover

There is good news if you are forced to take larger minimum IRA withdrawals than you need or care to receive. Permanent changes to the U.S. tax code allow you to reduce income taxes from your IRA and support charitable organizations such as Morris Hospital Foundation.

The IRA charitable rollover (also called the Qualified Charitable Distribution, or QCD) is a terrific way to make a tax-free gift to Morris Hospital Foundation. Your gift from your IRA may satisfy your required minimum distribution without increasing your reportable income. Although you don’t get an income tax charitable deduction for the gift, you don’t pay taxes on your IRA withdrawal.

Consider these requirements to make an IRA charitable rollover:

• You must be age 70 1/2 or older when the gift is made.
• The gift must come from a traditional IRA or Roth IRA account.
• The gift must come directly from your IRA administrator to Morris Hospital Foundation.
• Total IRA charitable rollover gifts in any one year cannot exceed $108,000 per taxpayer.
• If you don’t itemize deductions and are not yet required to take your RMD, a QCD offers all of the benefits of an itemized income tax charitable deduction.
• If you are age 72 or older and must take your RMD, a QCD can satisfy your RMD without increasing your income taxes.
• The gift from your IRA will not be available as an income.