Did you know that if you are 701⁄2 years old or older, you can give up to $100,000 from your IRA directly to St. Vincent de Paul without paying income taxes on the money? Or, you can give a portion to St. Vincent de Paul and a portion to another charity, just as long as you don’t exceed the $100,000 maximum. (Note: You don’t have to donate the entire IRA to be eligible for the tax benefits. And if it’s worth more than $100,000, you can transfer a portion of it to fund a charitable gift.)
You’ll pay no income taxes on your gift. The transfer does not generate taxable income or a tax deduction, so you’ll benefit even if you don’t itemize your deductions.
If you haven’t taken your required minimum distribution this year, your IRA charitable rollover gift can satisfy all or part of that requirement.
If your spouse is 70 1⁄2 years old or older, he or she can also give up to $100,000 from his or her IRA.
If you have more than one retirement account where some are pensions and some are IRAs, keep in mind that direct rollovers to a qualified charity can be made only from an IRA. Under certain circumstances, 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 St. Vincent de Paul. (Speak with your plan administrator about this.) If you have questions or need more information, please contact Michael Acaldo at firstname.lastname@example.org or call (225) 383-7837, ext. O. And remember, always consult with a tax professional before you make a gift of this nature.