The IRA Charitable Rollover allows individuals age 70 ½ and over to make direct transfers totaling up to $100,000 per year to 501(c)(3) charities without having to count the transfers as income for federal tax purposes.
This IRA rollover removes negative tax consequences and encourages Americans to give back to their communities during their lifetime.Individuals may begin taking distributions from their Individual Retirement Accounts (IRAs) as early as age 59½, but are required to begin taking them at age 70½.
To qualify, the funds must be contributed to a public charity like CDK, and be made from traditional IRAs or Roth IRAs. Donors may receive no goods or services in return for their contributions, and must obtain written documentation of their contribution from each recipient charity.
These gifts count toward the required minimum distribution you must take annually from traditional IRAs, but aren’t included in your adjusted gross income thereby reducing your tax burden. To be clear, since the gifts aren’t counted in your income, you can’t claim an itemized charitable deduction for them as well.
Please contact your Financial Adviser for additional information on making an IRA Contribution or other tax matters. If you would like to learn more how the Charitable IRA rollover provision can help you support CDK contact Mallory Anderson, at 978.422.5299 ext. 1002
In case you need it, our EIN or Tax Identification Number is 04-3412812