IRA Charitable Rollover

Posted on December 05, 2018 in: General News

IRA Charitable Rollover - Great Opportunity Under New Tax Laws 

Whether you itemize or not in 2018, this unique opportunity allows you to make a charitable
contribution through a direct IRA transfer while reducing your adjusted gross income.
If you would like to make a gift to our Parish using your Ira and if:
1. You are at least 70 1/2 years old on the date you make your gift
2. Your IRA is a traditional (some Roth IRA’s may qualify)
3. You don’t exceed your personal maximum of $100,000 per year in qualified
charitable distributions

You will not have to report your distribution as income. It will be free of federal and New
York State income tax, and it will count toward your required minimum distribution (RMD).
The best way for you to start is with your IRA custodian. Tell them you want to make a
"qualified charitable distribution". In most cases you will only have to fill out a simple form.
VERY IMPORTANT!! Your gift must go directly from your IRA to our Parish. If you receive the
money first then you’ll be taxed on it like any other distribution.

Bill has a $125,000 in a traditional IRA and would like to contribute $5,000 as his yearly gift to
his Parish. Upon hearing of the Charitable IRA Rollover opportunity, he directs the custodian of
his IRA to transfer this amount not later than December 31, 2018 directly to the Parish as the
family’s 2018 gift. He will not be subject to income tax on the $5,000 donation.

This information is not intended and should not be construed as legal, tax or investment advice. For
such advice, please consult an attorney, tax advisor or investment professional.