Tax-Free IRA Gifts
For those aged 70½ or older, it is once again possible to make tax-favored charitable gifts from traditional and Roth IRA accounts. Recent legislation retroactively extends the charitable IRA rollover for 2015 and makes this provision permanent for future years.
How It Works
- If you are 70½ or older, you can give up to $100,000 directly from your IRA or ROTH IRAs to charities such as Catholic Extension free from federal income tax each year.
- The transfer generates neither taxable income nor a tax deduction, so you still benefit even if you do not itemize your tax deductions. There may be state income tax savings as well.
- If you have not taken your required minimum distribution (RMD) for the year, your IRA charitable rollover gift can satisfy all or part of that requirement.
- The transfer may be made in addition to any other charitable giving you have planned.
- To make such gifts, it is important to not withdraw funds prior to a gift, but have the gift amount distributed directly from an IRA to one or more qualified charities. For those with check writing privileges on their accounts, this may be the most efficient way to make gifts directly from an IRA.
- If you have previously made a charitable distribution from your IRA to Catholic Extension, we will send you an updated letter.
If you are interested in this unique opportunity to help further the mission of Catholic Extension, or if you have any questions, please contact Melissa Babcock at (312) 795-6043 or firstname.lastname@example.org.
Please click here for a sample letter for you or your loved ones to send to an IRA administrator with specific information about giving to Catholic Extension.