According to the IRS, you must be at least 70 ½ at the time the distribution is completed so you will have to wait until you pass that milestone.
Transfers may be made to public charities, such as Carrollton School of the Sacred Heart. However, donors may not make IRA Charitable Rollovers to donor advised funds, supporting organizations and private foundations.
The IRA Charitable Rollover applies to IRAs only and does not apply to 401(k), Keogh, 403(b), or profit-sharing plans. Nor does it apply to Simple IRAs, or SEPs. However, you could roll some of your other retirement assets into an IRA and then make an IRA Charitable Rollover contribution to Carrollton.
$100,000 can be contributed annually (in the aggregate to all charities), per person. If you and your spouse have separate IRA accounts, each of you may transfer and exclude $100,000 from taxable income.
These gifts, which count as your Required Minimum Distributions (RMDs), will reduce your taxable income and prove valuable as a deductible contribution. However, since your IRA funds have not been subject to income tax, they cannot be deducted as charitable gifts.
Many donors view the IRA Charitable Rollover as a way to manage their income. By excluding the qualified charitable transfer from income, this provision helps you save additional money.
Since charitable deductions are limited by AGI, the IRA Charitable Rollover allows donors to maximize charitable contributions while still minimizing their AGI. And the IRA Charitable Rollover allows especially generous donors to benefit from contributions beyond AGI limits.
Yes! The Consolidated Appropriations Act of 2023 allows for a one-time distribution to create a life income gift. This new type of QCD is a one-time maximum transfer of $50,000 to a qualified CRT, or in exchange with a charity for a CGA. *Important terms and conditions apply. Please contact our office or your financial advisor.