Making Charitable IRA Gifts Can Save You Taxes

Making a tax-free donation from an IRA is gaining in popularity among seniors, particularly those who do not need their required minimum distribution (RMD). If you are a taxpayer that must take required minimum distributions because you are age 70 ½ and older, you may want to consider making a tax-free contribution (up to $100,000 per calendar year) directly from your IRA to qualified charities like Bethesda.

By gifting IRA funds directly to Bethesda, you do not report the IRA distribution as income. This tax savings is especially beneficial if you do not itemize your deductions. As with other charitable gifts, you may designate which Bethesda community or service you want to receive the donation.

Helpful Tips for Donating Your IRA Gift

• At age 59½ or older, you may begin withdrawing from your IRA without penalty; however, at age 70 ½ you must begin taking your RMD.
• The funds must transfer directly from your IRA to Bethesda. Do not take an IRA withdrawal, and then turn around and write a check to the charity.
• If you are married, your spouse also may be eligible to gift up to $100,000 from his or her IRA (if age 59 ½ or older).
• A charitable IRA rollover gift counts toward your RMD.
• You may donate IRA funds only to qualified charities like Bethesda, not to a Donor-Advised fund, gift annuity, private foundation, or charitable remainder trust.

For more information contact the Bethesda Health Group Foundation.

This information is not intended as legal or tax advise. Consult your tax advisor or attorney pertaining to your tax situation.