IRA Charitable Rollover

Plan on it!

The IRA Charitable Rollover allows individuals 70½ and older to transfer up to $100,000 annually from their IRAs to charitable organizations without having to count the distributions as taxable income. For those who qualify, IRA Charitable Rollover gifts can also count toward satisfying the annual required minimum distribution, but can be made even if you have already taken your minimum distribution.

A permanent provision in the law, available each and every year, the IRA Charitable Rollover can play a highly valuable role in one's financial planning.

Here is what you need to know to take advantage of the opportunity:

  • Eligibility: Individuals age 70½ or older.
  • Amount eligible: Any amount up to $100,000 per year.
  • Method: Direct transfer from an IRA account to the MFA.
  • How to initiate a transfer: Contact your IRA administrator for instructions; notify the MFA.
  • If you have a 401(k), 403(b) or other plan: The plan administrator can create a rollover IRA from which to transfer funds to the MFA.

Retirement plans are among the most highly taxed assets one can own, subject to income tax in life, estate tax at death, and income tax when left to an individual other than a spouse. Although IRA Charitable Rollover gifts do not qualify for the charitable deduction, they are in effect 100% deductible.

As in all charitable gift decision-making, review with one’s advisor is encouraged.

For more information, please call 617-369-3193 or contact us online.