If you are over 70 ½ years old, you are now allowed to donate up to $100,000 a year tax free from your IRA to a public charity.  The IRA Charitable Rollover is now a permanent tool that you can incorporate into your financial planning strategy.

These gifts are distributed directly from your IRA to the charity.  This kind of rollover also qualifies as your annual required minimum distribution (RMD), which can lower your income, as well as cut your taxes, while providing a significant benefit to the charity you support. Moreover, the rollover does not count toward your annual income limitations on charitable gifts, which could allow you to give more in any given year.

This gift only works for IRAs.  If you have other retirement plans, such as a 401k, you must first roll it into an IRA to make this kind of contribution.  Further, the accepting entity must be a “public” charity, such as Senior Concerns, and not a private foundation.

An IRA Charitable Rollover may help you make a large donation without using cash or other assets and if you don’t need the RMD for living expenses.  Consult your financial advisor and accountant to determine whether this program will work for you.

When you need guidance on how to set up your estate—regardless of size—to protect your assets and define your legacy, please contact Terri Hilliard for a free, initial consultation.  Call 805-778-0111 or e-mail thilliard@terrihilliard.com.