Reduce Your Taxes with an IRA Rollover Gift
Margaret: I have been fortunate that I could make gifts to charity every year. My financial advisor told me that because I was turning 73 this year, I would have to begin taking distributions from my IRA. He also told me that because my income was increasing, my tax rate would too.
I started looking at ways to save money and reduce my taxes. I talked to my favorite charity and learned that I could reduce my income and my taxes by transferring money directly from my IRA directly to charity.
Individuals age 70½ and older may make gifts directly from their IRA to a qualified charity. Individuals age 73 and older must take "required minimum distributions" from their IRA each year. With the IRA charitable rollover, these individuals can transfer up to $111,000 per year directly to charity and it satisfies the required minimum distribution.I started looking at ways to save money and reduce my taxes. I talked to my favorite charity and learned that I could reduce my income and my taxes by transferring money directly from my IRA directly to charity.
Margaret called her IRA custodian and requested a transfer of $10,000 from her IRA directly to her favorite charity.
Margaret: I knew that I would never use all of the money in my IRA. I was thrilled to learn that a gift from my IRA could reduce my income taxes this year while helping my favorite ministry.
Is an IRA rollover gift right for you?
Have you calculated what your IRA required minimum distribution will be this year and how it will affect your taxes? If you have questions about how you can benefit from an IRA rollover, please feel free to contact us.
*Please note: The name and image above are representative of a typical donor and may or may not be an actual donor we have worked with.