charitable rollovers and making the most of your required minimum distributions

If you're age 70 1/2 or older, you may qualify to make a "qualified charitable distribution" from your IRA - counting the transfer toward your required minimum distribution while excluding that amount from your taxable income.   

People age 70-1/2 and older can transfer up to $100,000 from their IRAs tax-free to charity and count the gift toward their required minimum distribution without having to recognize the amount contributed as part of their gross income.  Donors can take advantage of this opportunity by doing the following:

• Transferring the money directly from their IRA accounts to charitable organizations like the Land Trust.

• Remembering that only traditional, rollover, and Roth IRAs (the latter must have been open for at least five years and meeting other conditions) can be the source of such transfers.

• Making these transfers by December 31 of the given tax year.

Donors who must take required distributions from their IRA accounts may want to consider using the charitable rollover in lieu of some or all of their required distributions. Here’s a helpful article from Fidelity Charitable* explaining the process and benefits of a rollover versus donations of securities or other giving options.

When you talk with your financial adviser or IRA agency to request a charitable rollover, the following information may be helpful.  Charitable contributions to Palouse Land Trust are directed to:

Palouse Land Trust, Inc.
PO Box 8506
Moscow, ID 83843
                           
Phone:  208-669-0722
IRS Tax ID: 94-3219418
Established 1995

For more information, contact Lovina at lovina@palouselandtrust.org, 208-596-4496.

*This article is presented for informational purposes only and does not constitute an endorsement or referral to Fidelity Charitable and subsidiaries.