A Tax-Free Gift with Your IRA Rollover

Are your required minimum IRA withdrawals greater than you need, or care to receive? Would you like to reduce the taxable income from your IRA?

The IRA charitable rollover (also known as a Qualified Charitable Distribution or QCD) is a terrific way to make a tax-free gift to Boys Ranch. Your gift from your IRA of up to $100,000 can satisfy your required minimum distribution (RMD) without increasing your income taxes. Although you don’t get an income tax charitable deduction for the gift, you don’t pay taxes on your IRA withdrawal. In effect, the IRA charitable rollover is a tax-reducing and tax-free way to make a gift.

Consider these important requirements to make an IRA charitable rollover:

  • You must be age 70 1/2 or older when the gift is made.
  • The gift must come from a traditional IRA or Roth IRA account. (401(k), 403(b), SEP IRA accounts, and other retirement accounts do not qualify.)
  • The gift must come directly from your IRA administrator to Boys Ranch.
  • Total IRA charitable rollover gifts in any one year cannot exceed $100,000.
  • The IRA rollover gift can count toward your required minimum distribution if you have not already taken your RMD for the year you make your gift.
  • The gift from your IRA will not be available as an income tax charitable deduction.
  • The gift from your IRA will be excluded from income.

Your IRA administrator can help you make a Qualified Charitable Distribution from your IRA. Be aware that many administrators require you to use their QCD distribution form and comply with other requirements. Please note that it is important to follow your financial institution’s forms and procedures to ensure you receive the tax benefits of a QCD.

If you are interested in making such a gift or if you just want more information, please contact Travis McClure at 806-322-2543 or travismcclure@calfarley.org.

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