IRA Charitable Rollover

A tax-free, charitable opportunity…

There is a tax-free charitable giving opportunity some local residents may not want to miss.  While the fate of the IRA charitable rollover law remains uncertain for 2012, this year it continues to offer people aged 70 1/2 and older a special, tax-free opportunity to make a significant charitable gift.

How does the IRA charitable rollover work?

If you are at least 70 1/2 and required to take a minimum distribution from your IRA, you can transfer up to $100,000 of your IRA assets directly to a public charity. The transferred assets will not be recognized as income, so they will be free from federal income taxes today and estate taxes in the future. If you and your spouse both are subject to required minimum distributions, you can achieve the charitable gift of a lifetime by transferring up to $100,000 each.

The Community Foundation of the Eastern Shore offers a number of options to achieve your charitable objectives through an IRA charitable rollover:

• You can establish or add to a designated fund benefiting one or more nonprofits of your choice.
• You can establish or add to a field of interest fund in support of a particular area of interest in the Lower Shore area, such as the arts, education, or the environment.
• Through a transfer to the Lower Shore Fund for Community Needs, you can help the Foundation address the most critical unmet needs in our area.

Please keep in mind that at present, only IRA withdrawals qualify for this special charitable treatment. The withdrawals cannot come from any other type of retirement plan, nor do they qualify for any additional charitable deduction. Although expanding the charitable IRA rollover has been discussed in Congress, it currently does not apply to other charitable alternatives such as donor-advised funds, charitable gift annuities, charitable remainder trusts, and private foundations.

To learn more about this and other charitable giving strategies, contact the Community Foundation at 410-742-9911.

Spicer Bell
President
Community Foundation of the Eastern Shore