Tax Savings With IRA Charitable Rollover

IRA Charitable Rollover

The IRA Charitable Rollover, signed into permanent law in 2015, gives taxpayers the opportunity to make charitable gifts from their IRAs.

How does it work?

At the age of 70.5, those with traditional IRAs must begin taking required minimum distributions (RMDs) from their IRAs whether or not they want them. These distributions are taxed as ordinary income and increase the recipient’s adjusted gross income. The IRA Charitable Rollover allows individuals who do not need their RMDs to gift all or a portion of them directly to charity (up to $100,000 annually), thus avoiding the need to recognize the money as income.

What are the benefits?

Those who take advantage of the IRA Charitable Rollover will avoid increased income taxes, as their RMDs will not be taxed as ordinary income. They will also have the opportunity to make a tremendous impact on the Catholic parish, school or ministry they love.

Who is eligible?

Individuals aged 70.5 or older with traditional IRAs.

How do I use the IRA Charitable Rollover to support my favorite Catholic organization?

To save on taxes and sustain the Catholic ministry you love with an IRA Charitable Rollover, submit a distribution request to your IRA custodian, asking that the money be transferred directly to the Roman Catholic Foundation, for benefit of the endowment fund that supports your chosen organization. (See funds listing. Please note that contributions to Donor-Advised Funds are not considered qualified charitable contributions under the IRA Charitable Rollover provision.) If a check is issued, the check should be made payable to the Roman Catholic Foundation.

Please note that the money must go directly to the Foundation. If you first receive the distribution and then send the money to the Foundation, you must recognize the distribution as income. You will receive a charitable deduction for your gift but will miss out on the benefits of the IRA Charitable Rollover.

What is the Foundation’s full legal title?

Roman Catholic Foundation of Eastern Missouri
Tax Identification Number: 46-3309222