If you are 70½ years old or older, you can take advantage of a simple way to benefit Boys & Girls Clubs of Grand Rapids Youth Commonwealth and receive tax benefits in return. You can give up to $100,000 from your IRA directly to a qualified charity such as ours without having to pay income taxes on the money. This popular gift option is commonly called the IRA charitable rollover, but you may also see it referred to as a qualified charitable distribution, or QCD for short.
Why Consider This Gift?
- Your gift will be put to use today, allowing you to see the difference your donation is making.
- You pay no income taxes on the gift. The transfer generates neither taxable income nor a tax deduction, so you benefit even if you do not itemize your deductions.
- If you have not yet taken your required minimum distribution for the year, your IRA charitable rollover gift can satisfy all or part of that requirement.
Now is the perfect time to consider an IRA charitable rollover as part of your year-end giving. Please contact Angie Stumpo at 616-233-9370 x111 or astumpo@bgcgrandrapids.org if you would like more information.
Frequently Asked Questions
Q. I’m turning age 70½
in a few months. Can I make this gift now?
A. No. The legislation requires you to reach age 70½ by the date
you make the gift.
Q. I have several
retirement accounts—some are pensions and some are IRAs. Does it matter which
retirement account I use?
A. Yes. Direct rollovers to a qualified charity can be made only
from an IRA. Under certain circumstances, however, you may be able to roll
assets from a pension, profit sharing, 401(k) or 403(b) plan into an IRA and
then make the transfer from the IRA directly to The Rotary Foundation. To
determine if a rollover to an IRA is available for your plan, speak with your
plan administrator.
Q. Can my gift be used
as my required minimum distribution under the law?
A. Yes, absolutely. If you have not yet taken your required minimum
distribution, the IRA charitable rollover gift can satisfy all or part of that
requirement. Contact your IRA custodian to complete the gift.
Q. Do I need to give
my entire IRA to be eligible for the tax benefits?
A. No. You can give any amount under this provision, as long as it
is $100,000 or less this year. If your IRA is valued at more than $100,000, you
can transfer a portion of it to fund a charitable gift.