IRA Rollover Provision Reinstated !
Once again, the IRA charitable rollover provision has been extended.
A fabulous tax saving opportunity is available to you. If you are 70½ or older (or know someone who is) the new IRA Rollover Provision permits you to make a contribution of up to $100,000 to the Jewish Federation.
This provision avoids the normal income tax on such distributions. Amounts paid directly to a qualifying charity* from a donor’s IRA may be counted toward the donor’s minimum distribution requirement from the donor’s IRA. The charitable contribution is tax-neutral -- it will not be included in the taxpayer’s income and it will not be deductible.
The IRS forces the annual distribution (and payment of ordinary income tax!) of up to 5% of your IRA balance. If you have up to $2,000,000 in your plan, you will pay tax on an additional $100,000 this year.
To avoid this fate, you can donate your mandatory IRA distribution to the Jewish Federation! It’s a win-win – at 46% tax (State plus Federal) you will have a positive impact for yourself and the Jewish Federation.
The IRA Rollover Provision is an ideal charitable opportunity if, for example:
Don’t delay, talk with your financial advisor about this incredible opportunity.
*Rollover gifts may not be used to establish gift annuities or charitable remainder trusts or be contributed to donor advised funds, supporting foundations or private foundations.