IRA charitable rollover

Posted by Spalding Hurst

March 11, 2022

An end-of-year giving option

Long-time donor Mary has saved all her life, and now her IRA has grown quite large. Since she is older than age 72, the government imposes the required minimum distribution from her IRA. Mary loves the mission of the Sisters of Charity of Nazareth but is concerned she can not continue to support them because she will pay a lot of taxes and she’s unsure if she will have enough leftover. However, a charitable IRA rollover can meet Mary exactly where she is in life.

Using your IRA for good

If you receive annual income from an IRA, you are likely to pay more in taxes each year. If you fail to withdraw your required minimum distribution, you face stiff penalties. The good news is that rolling over part or all of your required minimum to charity can help reduce your tax bill while supporting a cause close to your heart.

Congress passed a law that gives you this option for your IRA withdrawal. While you must withdraw a certain amount of money from your IRA each year, the IRA charitable rollover gives you a way to avoid paying income taxes and still meet your required minimum distribution.

If you are age 70 or older, you can direct your IRA administrator to distribute a gift from your IRA to the Sisters of Charity of Nazareth. Any amount you transfer may count toward your required minimum distribution, and you can direct up to $100,000 to your favorite causes this year.

Your IRA administrator will provide forms and procedures to help you make a rollover gift.

  • You can directly transfer of up to $100,000 to be made this year from your IRA.
  • You will pay no income taxes on the amount transferred. (Because you are not claiming the transferred amount as income, you will not receive an income tax deduction for your gift.)
  • Contact us to let us know how you would like your gift to be used.

Learn more

If you like the idea of saving on taxes and supporting the Sisters of Charity of Nazareth, an IRA charitable rollover gift may make sense for you. Want to learn more about how a rollover may help you meet your required minimum distribution and save on taxes? Call us at (502) 348-1593.

Spalding Hurst


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