The Charitable IRA Rollover allows people to make tax-free distributions from Traditional or Roth Individual Retirement Accounts (IRA) to qualified non-profit organizations, such as The INN (the Interfaith Nutrition Network).
If you are 70 1/2 or older, you may request direct transfers from your IRA in any amount, up to $100,000 to a charity before December 31, 2016, without reporting it as taxable income. Thus, it may be possible for couples who each have separate IRA accounts to transfer up to $200,000 between now and the end of 2016. The total amount of your contribution will count towards your required minimum distribution (RMD), and you may exclude up to $100,000 of the gift from your federal gross income-resulting in a lower taxable income and possible tax savings.
Advantages to you:
*You can use an overlooked asset to make a gift to The INN
*The IRA Charitable Rollover permits you to make donations directly to The INN from your IRA without counting the distribution as part of your AGI and, consequently, without paying taxes on it.
*You don’t recognize the distribution as income for federal income tax purposes.
*The distribution counts towards your minimum required distribution for the year.
To qualify:
*You must be 70-1/2 or older and required to make an annual distribution from your IRA.
*Your total combined charitable IRA rollover contribution cannot exceed $100,000 in any one year.
*Charitable contributions from an IRA must go directly to The INN as a public charity. Contributions to donor-advised funds and private foundations, except in narrow circumstances, do not qualify for tax-free IRA rollover contributions.
*Distributions can only be made from traditional Individual Retirement Accounts or Roth IRAs. Charitable donations from 403(b) plans, 401(k) plans, pension plans, and other retirement plans are ineligible for the tax-free treatment. Distribution must be made directly from the IRA trustee payable to The INN.
*You cannot receive any goods or services in return for your charitable IRA rollover contribution in order to qualify for tax-free treatment.
*You must receive an acknowledgement from The INN for each rollover contribution.
We encourage you to check with your financial advisor about the best way to take advantage of this opportunity.
For more information about making a Charitable IRA Rollover contribution to The INN please contact ourDirector of Development
Dorian Stern at 516-486-8506 x 106 or dstern@the-inn.org
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