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IRA Charitable Rollover

The IRA Charitable Rollover... An Easy Way to Support STKA!

Did you know that anyone age 70½ or older can direct their IRA administrator to distribute a gift from an IRA to support Suburban Temple - Kol Ami? Any amount transferred counts against the required minimum distribution, and individuals can direct up to $100,000/year.


Easy Steps to Make an IRA Rollover Gift:

  • Contact your IRA administrator. Most IRA administrators provide forms and a procedure to help you make a rollover gift.
  • You can direct a transfer of up to $100,000 to be made this year from your IRA to ST-KA
  • You will pay no income taxes on the amount transferred.
  • Note: Because the transferred amount cannot be treated as income to you, you will not receive an income tax deduction for your gift.

Questions? Contact Brett Shankman, Executive Director

Frequently Asked Questions

What does it mean to make an IRA Charitable Rollover gift?

An IRA Charitable Rollover allows individuals age 70½ and older to make direct transfers totaling up to $100,000 per year to organizations that are eligible to receive tax-deductible contributions, without having to count the transfers as income for federal income tax purposes.

 

How much can I transfer?

Up to $100,000/year.

 

From what accounts can I make transfers?

Transfers must come from your IRAs directly to ST-KA. If you have retirement assets in a 401(k), 403(b) etc., you must first roll those funds into an IRA, and then you can direct the IRA provider to transfer the funds from the IRA directly to Suburban Temple - Kol Ami.

 

To what organizations can I make gifts?

Organizations, including ST-KA, that are eligible to receive tax-deductible contributions.

 

If I made a Charitable IRA Rollover gift in other tax years, can I do this again for the 2018 tax year?

Yes. Even if you and your spouse each made the maximum $100,000 charitable IRA rollover gift to a qualifying charity during one or more previous years, you can still take advantage of this legislation again for the 2018 tax year.

 

Can I use the rollover to fund life-income gifts (charitable gift annuities, charitable remainder trusts, or pooled income funds), donor-advised funds, or supporting organizations?

No, these are not eligible.

 

May I use the rollover to support a particular purpose of Suburban Temple - Kol Ami?

As with all other gifts, you may direct your IRA Charitable Rollover gift as you see fit. However, you may not direct your gift for a purpose from which you receive a personal
benefit, goods, or services in return, such as a High Holy Days ticket or to
purchase items at a silent auction.

What are the tax implications to me?

  • Federal — You do not recognize the transfer to ST-KA as income, provided it goes directly from the IRA provider to us. However, you are not entitled to an income tax charitable deduction for your gift.

Does this transfer count towards my required minimum
distribution?

Once you reach age 70½, you are required to take minimum distributions from your retirement plans each year according to a federal formula. IRA Charitable rollovers count towards your required minimum distribution for the year.

 

How do I know if an IRA Charitable Rollover is right for me?

  • You do not need the additional income necessitated by the required minimum distribution, OR
  • Your charitable gifts already equal 50% of your adjusted gross income, so you do not benefit from an income tax charitable deduction for additional gifts, OR
  • You do not itemize deductions, OR
  • You are subject to income tax deduction and exemption phase-outs.

What is the procedure to execute an IRA Charitable Rollover?

To complete an IRA Charitable Rollover, the first step is to contact your IRA provider to learn its procedures for initiating a rollover. Make sure that you contact us when you direct the rollover so we can look for the contribution from your IRA provider.

 

All information has been obtained from sources believed by ST-KA to be reliable. As with all gifts, please consult your tax advisor for specific tax advice.
Mon, December 10 2018 2 Tevet 5779