IRA Charitable Rollovers
Your IRA Can Now Be Used to Bless Israel – and Lower Your Tax Bill
If you are at least 70-and-a-half years old, you may now make a tax-favored charitable gift from your IRA account to The Fellowship.
It’s called the “IRA Charitable Rollover.” It can help you save on taxes even if you don’t itemize on your income tax return.
Here’s how it works:
You can transfer any amount from your IRA, up to $100,000, directly to The Fellowship free from federal income tax. The key advantage of giving directly from your IRA is that the amount contributed counts toward your required IRA minimum withdrawal amount for the year of the gift. There is no income tax on the amount transferred to The Fellowship from your IRA. We have prepared this letter for your convenience to submit to your planned administrator when making the request.
Tax savings for non-itemizers
Most Americans do not “itemize” deductions on their tax returns and instead take the “standard” deductions. Ordinarily, if you don’t itemize – you don’t get to enjoy a tax break in return for your gift to charity. But the new Charitable IRA Rollover allows you to save on taxes even if you don’t itemize!
John, age 75, makes a contribution of $1,000 to The Fellowship each December. In past years, he wrote a check to make his gift. Since he takes the standard deductions on his tax return and does not itemize, this gift has no effect on his taxes.
This year, however, instead of writing a check directly, John called his IRA Administrator and directed that the amount of $1,000 be sent from his IRA account to The Fellowship as an IRA Charitable Rollover gift. This amount counts as part of his annual required minimum distribution from his IRA. Since this gift goes to charity instead of to John, it is not counted as taxable income, thus reducing his overall tax bill for the year.
Please note that under current law, this plan may not be used to establish a charitable gift annuity.To make a gift under the IRA Charitable Rollover, do not withdraw funds prior to making the gift, but instead have the gift amount distributed directly from your IRA to The Fellowship at the following address:
International Fellowship of Christians and Jews
Office of Gift Planning
30 North LaSalle Street, Suite 4300
Chicago, IL 60602
As always, please consult your personal professional advisor before making a gift.
May we help you?
If you have questions,or to receive our free IRA Charitable Rollover Kit with forms and instructions, please contact The Fellowship’s Planned Giving Department by email or by phone at (888) 588-4325.
Names and some details in examples have been changed to protect privacy.