Rollover Your IRA for Good
Nov 14, 2019 by Knute Nelson Foundation
Are you frustrated by the required minimum distribution rules?
- You must withdraw a portion of your IRA each year based upon your age.
- You must pay income tax on the portion you withdraw.
- You will face stiff penalties if you fail to withdraw your RMD.
By taking a distribution from your IRA this year, you will likely pay more in taxes and may even reach a higher tax bracket. Rolling over part of your IRA’s "required minimum distribution" or "RMD" to a charity like ours can help reduce your tax bill while supporting our cause.
You may not be aware that Congress passed a law that gives you another option for your IRA withdrawal. While you must withdraw a certain amount of money from your IRA each year, the IRA charitable rollover gives you a way to avoid paying income taxes and still meet your RMD.
An Easy Way to Help Our Cause
If you are 70½ or older, rather than simply take your withdrawal this year, you can direct your IRA administrator to distribute a gift from your IRA to our organization. Any amount you transfer counts against your required minimum distribution (RMD), and you can direct up to $100,000 to your favorite causes this year.
Making an IRA Rollover Gift is Easier Than Ever
- Contact your IRA administrator. Because of the popularity of the rollover, most administrators provide forms and a procedure to help you make a rollover gift.
- You can direct a transfer of up to $100,000 to be made this year from your IRA to a qualified charity.
- You will pay no income taxes on the amount transferred.
Note: Because you are not claiming the transferred amount as income, you will not receive an income tax deduction for your gift.
- Please contact us to let us know how you would like your gift to be used.