As the end of the year approaches, it’s a good time for congregations and non-profits to remind their members about the win-win giving opportunity that an IRA Charitable Rollover provides. Encourage members who may qualify to contact their financial advisor to find out how it might benefit them and your congregation or non-profit.

Following is more information that you can share with your members…

Whether you are fully or partly retired, you may find that your lifestyle is fine as-is and that you don’t need additional money from your IRA. However, even if you don’t need (or want) the extra funds, at age 72 (it was age 70½ prior to January 1, 2020), the IRS requires you to take IRA withdrawals known as “Required Minimum Distributions” (RMDs).  RMDs are subject to income taxes, and more taxable income may push you into a higher tax bracket.

Thankfully, for charitably-minded retirees with traditional IRAs, there is a tax-relief strategy available: the Qualified Charitable Distribution (QCD). The QCD gifting option allows you, starting at age 70½, to instruct your IRA administrator to direct IRA distributions—up to $100,000 per year – to a qualified 501(c)(3) charity. Because the IRA income goes directly to charity, you do not report the QCD as taxable income and do not owe any taxes on the QCD, which may be particularly beneficial to you if you are forced to take RMDs and don’t need the extra money. In addition to avoiding taxable income, your IRA distribution can be put to good use by your congregation or non-profit.

Fred Stoltz, Sr. Program Director
The James Company
(414) 690-3426