Double the benefits: You can make a gift to ABHMS by rolling over your IRA distribution tax-free!
Are you at least 70½? The IRA Charitable Rollover provides you with an excellent opportunity to make a gift to American Baptist Home Mission Societies (ABHMS) during your lifetime from an asset that would be subject to multiple levels of taxation if it remained in your taxable estate.
- Your gift can total up to $100,000.
- The gift is not included in your gross income for federal income tax purposes.
- The gift can count toward your required minimum distribution for the year from your IRA.
Do You Qualify?
- You are 70½ or older at the time of gift.
- Transfers must be made directly from a traditional IRA account.
- Funds that are withdrawn by you and then contributed do not qualify.
Is this Option Right for You?
- You do not need the additional income by your minimum required distribution, OR
- Your charitable gifts already equal 50% of your adjusted gross income, so you do not benefit from an income tax charitable deduction for additional gifts, OR You do not itemize deductions, OR You are subject to income phase- outs on your income tax deductions.
- For example, suppose John wants to make a gift to ABHMS. He has $500,000 in his IRA and he wants the contribution to be $20,000. He can transfer the $20,000 to ABHMS. The $20,000 distributed to ABHMS will not be subject to federal tax and can be counted toward his annual minimum required distribution.
As you plan your required minimum distributions for this year, if you do not need the money the government is requiring you to take, consider using it for a charitable gift with the IRA Charitable Rollover.
Double the Benefits!
An IRA charitable rollover gift can benefit both you and ABHMS’ mission! By taking a distribution from your IRA this year, you will likely pay more in taxes and may even reach a high tax bracket. Rolling over part of your IRA’s required minimum distribution (RMD) to a charity like ABHMS can help reduce your tax bill while supporting ABHMS’ cause.
For additional information, contact Vincent W. Dent Sr., ABHMS chief development officer, at 610.768.2420 or 1.800.222.3872, x2420.
As required by IRS tax code, tax-deductible contributions are received with the understanding that ABHMS has full discretion over the use of all donated funds. Best practices dictate that every effort is made to comply with donor wishes.