IRA Rollover: A Gift with Substantial Benefits
Because Mark was over age 70½, he could give away up to $105,000 directly from his IRA to his favorite charity this year. Mark's gift would qualify for his required minimum distribution amount, reducing his income and taxes.
Mark: Making an IRA rollover gift was an obvious solution to my tax situation. Also, I wanted to help the same charity again this year.
Mark gave the maximum amount, $105,000, for an IRA rollover gift this year. Because of Mark's income level, he enjoyed added tax benefits.
Mark: I hope I can reduce my income every year using this strategy, this year I will direct my IRA Custodian to direct my withdrawal directly, and partially, to be paid to my parish, and partially to another favorite Catholic cause.
Is an IRA rollover gift right for you?
Have you calculated what your IRA required minimum distribution will be this year and how it will affect your taxes? If you have questions about how you can benefit from an IRA rollover, please feel free to contact us.
*Please note: The name in the story is representative of many of the faithful who need to save taxes during retirement and their senior years. This IRA Rollover gift example is one solution that many are using. The Catholic Foundation hopes you enjoy these descriptive examples of legacy gift planning.