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Giving — and saving — through your IRA

Giving — and saving — through your IRA
Giving — and saving — through your IRA
As you may recall, President Obama signed a new tax bill and made the IRA charitable rollover permanent at the end of last year.

This means, if you are over 70½, you are eligible to make an IRA charitable rollover to public charities like ours. And the good news is that your IRA distribution to charity will be similar to other IRA rollovers — it will not be included in your Federal taxable income.
While there is no added deduction for an IRA charitable rollover, avoiding up to $100,000 of taxable income may save substantial income taxes.

If you qualify, please consider a charitable IRA rollover because:
  • It's a simple and easy way to make a gift.
  • With an IRA charitable rollover, you may take the standard deduction and still receive benefits for your gift. Because the IRA rollover qualifies for Required Minimum Distribution (RMD), it may reduce your taxes.
  • With an IRA distribution, you may be paying tax on 85% of your Social Security. Using the IRA charitable rollover may lower your income and only 50% of Social Security is taxable.
  • With an IRA charitable rollover, you may give more than the usual deductible amount of 50% of income.
Your IRA charitable rollover this year could be $1,000, $5,000 or any amount up to $100,000. We recommend that you discuss the benefits of an IRA rollover with your CPA or tax advisor.

Generous Sanford Health Foundation donors, Dick and Kathy Sweetman, have already taken advantage of this opportunity.
"The charitable IRA rollover is a win-win!" Dick said. "Kathy and I found it to be a great way to make a gift to a project we are passionate about with cash from our IRA that did not have to be reported as income; a charitable contribution while satisfying our annual RMD. Truly a win-win."

If you are considering making an IRA rollover gift, please contact our regional experts here . We are happy to talk to you more about this wonderful gift opportunity.