Many people who desire to practice good stewardship of their resources view estate planning as a wise way to provide for their loved ones and communicate what matters most in their lifetime. A great way to do this is by leveraging your retirement assets and the permanently-instated IRA charitable rollover. The rollover allows you to bless the organizations you care about while also avoiding heavy taxation on your assets and income.
Options for utilizing your retirement assets
You can name a charity as a beneficiary of your individual retirement account (lRA) or life insurance policy to establish a future gift without impacting your current
income. If you are older than 72, you can transfer IRA distributions to a charitable organization as a tax-free donation (up to $100,000 total per year) and satisfy minimum distribution requirements.
“The earth and everything in it, the world and its inhabitants, belong to the Lord.” Psalm 24:1
IRA Charitable Rollover
If you are age 72 or older and have an IRA, but are making charitable gifts
Here are a few of the benefits you will enjoy:
- from your checkbook, you are missing a very important tax break! A gift from Avoid taxes on transfers of up to your IRA is considered a Qualified $100,000 from your IRA to charity.
- Charitable Distribution (QCD) which Satisfy required minimum counts toward your Required Minimum distribution for the year.
- Distribution (RMD) for the tax period. Under the new tax law many people’s itemized deductions do not exceed the Reduce taxable income, even if you do not itemize deductions.
- Make a gift that is not subject to the 50 percent deduction limits on new higher standard deduction.
Giving charitable gifts from your IRA may be your only way to Help further the work of charitable give and save on taxes at the same organizations and causes you’re time. Take advantage of the IRA passionate about charitable rollover gifting strategy as a means to support the work of charities you care about.
Money for Ministry
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Grand Rapids, MI 49512
This material has been prepared to provide general information regarding the subject matter covered. It is not intended to serve as legal, tax, or other financial advice. You should consult with your own attorney, CPA, or other advisor regarding your specific circumstance.