IRA Charitable Rollover
If you are over 70½, you are eligible to make an IRA charitable rollover to charities like your Community Foundation. And the great news is that your IRA distribution to charity is similar to other IRA rollovers – it will not be included in your Federal taxable income.
So while there is no added charitable tax deduction for an IRA charitable rollover, avoiding up to $100,000 of taxable income may save substantial income taxes.
Why use an IRA rollover? Charitable IRA rollovers are popular for these reasons
- Avoid income taxes on transfers of up to $100,000 from your IRA to our organization
- May satisfy your required minimum distribution (RMD) for the year
- Reduce your taxable income, even if you do not itemize deductions
- Convenience – It is a very simple and easy way to make a gift for your community and the causes close to your heart.
How an IRA charitable rollover gift works
- Contact your IRA plan administrator to make a gift from your IRA to the Quad Cities Community Foundation.
- Your IRA funds will be directly transferred to the Community Foundation to support the causes closest to your heart.
- Please note that IRA charitable rollover gifts do not qualify for a charitable deduction.
- Please contact us if you wish for your gift to be used for a specific purpose so we may direct your gift to the fund of your choice.
If you have any questions about an IRA charitable rollover gift, please contact us. We would be happy to assist you and answer any questions you might have.
IRA Rollover Fulfills Charitable Goals
Maggie Tinsman's IRA Charitable Rollover
Maggie Tinsman likes to be purposeful in her giving each year. "I'm passionate about the quality of the Quad Cities, and so I want it to be strong," she said. "It's given a lot to me and I want to give back."
Tinsman is already taking advantage of a newly enacted law that makes it easier for individuals 70½ or older to make a gift from their IRA to charity. With the law, Congress made a permanent extension of the IRA charitable rollover, applicable on transfers made in 2015, 2016 and beyond.
Tinsman has set up an endowment through the Community Foundation of the Great River Bend with her 2015 IRA distribution. It is one of several endowments she has set up to support causes she and her family care about.
"I pick a couple of charities and they annually receive a distribution from the endowments," said Tinsman, who is a former Iowa State Senator and gives to a variety of organizations in the community that are focused on the areas of education, health, literacy, women's programs, culture and social services. "I want to contribute to my community because these charities are doing very good work," she said.
An IRA charitable rollover can be made by working with an IRA plan administrator, who directly transfers the funds to the Community Foundation. The gifts do not qualify for an income tax charitable deduction, but they satisfy the required minimum distribution for the year and reduce taxable income. "It's a great way to give," Tinsman said. For Iowa taxpayers such as Tinsman, the IRA charitable rollover qualifies for the Endow Iowa Tax Credit of 25% of the amount transferred to the Community Foundation. The rollover must be placed in an endowment designated to support Iowa charitable causes.
"The Community Foundation is doing important work," Tinsman added, and she hopes others will see the philanthropic opportunities with the new law and the Community Foundation.
"It's very important. The Community Foundation is responding to the community on a regular basis," she said. "They are not just holding an annual fundraiser. They are a wonderful suggestion of how to give and maintain your community."
We can help you do the same thing Maggie is doing. Give our Development Team a call at 563/326-2840 to discuss your options.