Make a Tax-Free Gift from Your IRA
In December 2015, the “Protecting Americans From Tax Hikes Act of 2015” was signed into law, making permanent the IRA Charitable Rollover provision. As in years past, the IRA Charitable Rollover allows individuals 70½ and older to donate up to $100,000 in IRA assets to a qualified charitable organization—like Grace to You. The IRA Charitable Rollover is tax free and not included in a donor’s adjusted gross income.
What Does that Mean to You as a Supporter of Grace to You?
If you are 70½ or older, you can make a qualified charitable gift directly from your traditional or Roth IRA account. Qualified charitable distributions are tax free and not included in your adjusted gross income. While you won’t receive a charitable deduction, this option may be especially attractive to you if you do not need all of the income you are required to withdraw from your IRA—funds which are considered taxable income.
Requirements for IRA-Qualified Charitable Distributions
- Gifts are tax free up to $100,000.
- Gifts will qualify for all or part of your required minimum distribution.
- IRA owner must be 70½ or older at the time of the gift.
- Gifts must be made directly from your IRA account to Grace to You.
- Distributions to donor-advised funds or support organizations are not permissible.
- Gifts may only be made from traditional and Roth IRAs.
How to Proceed
- Contact your IRA administrator to obtain any required forms and follow their instructions.
- Let the Grace to You staff know that you are intending to make a charitable gift from your IRA.
If you have any questions or need more information, please contact our director of development:Paul Ackerman
Director of Development