The Diocese of Des Moines

Giving Through Your IRA

 

On December 18, 2015 the President signed the tax bill and the IRA charitable rollover is now permanent! The IRA Charitable Rollover allows Americans to give a gift from their retirement accounts (IRAs) to charity, tax free. This is a great opportunity for donors to support our work, while taking advantage of this unique giving opportunity.  Here’s a summary the key provisions of the bill:

 

The bill makes the IRA rollover permanent. Permanency is important for donors. Donors will now enjoy certainty. They will be able to better manage their income as well as their charitable giving.

 

The bill makes the IRA rollover retroactive to December 31, 2014. Gifts transferred directly from a donor’s IRA to a qualified public charity at any point during 2015 will qualify as a rollover gift. These gifts (up to the $100,000 limit) are both tax-exempt and the amount of a rollover gift can be used to meet the donor’s required minimum distribution.

 

The basic rules for IRA rollovers remain the same. Donors age 70½ or older can transfer up to $100,000 from their IRA to charity each year. An IRA rollover is a tax-exempt distribution from the IRA and the amount transferred can be used to meet the donor’s required minimum distribution. This means that people age 70½ and older can transfer up to $100,000 of IRA assets to public charities without triggering federal income taxes today or estate tax in the future. If married, your spouse is also eligible for the tax-free IRA transfer.

 

While the Charitable IRA Rollover doesn’t earn a charitable deduction, Iowa taxpayers taking advantage of the IRA charitable rollover are eligible to receive Endow Iowa tax credits, a 25 percent Iowa tax credit.

 

This renewed legislation has created a special charitable giving opportunity for individuals like you who saved diligently for retirement and now have the good fortune to be able to give back to the community.

 

Contact the Development Office at (515) 237-5079 with questions regarding making a gift through your IRA.