Last December, Congress made permanent a law that allows individuals age 70 ½ and older to donate up to $100,000 to charitable organizations such as the Sisters of the Divine Savior (SDS) directly from an IRA, without treating the distribution as taxable income. The contribution counts toward your required minimum distribution (RMD) and isn’t included in your adjusted gross income. It could qualify you for tax breaks tied to your adjusted gross income and reduce or eliminate taxes on your Social Security benefits.
It’s important not to withdraw funds prior to making such a gift. Instead, distribute funds directly from your IRA to a qualified 501 (c)(3) charity, such as SDS. If your IRA offers check writing privileges, it might be the most efficient way to donate directly from your account. Charitable gifts transferred directly from your IRA to charity at any point during 2016 will qualify as a rollover gift. Now that the law is permanent, future gifts will be treated in the same way, and there may be state income tax savings too.
Check with your IRA administrator or tax advisor for more information. Other questions, please contact Lori Land at SDS at email@example.com or 414-466-7414. Thank you for considering a gift to support the ministries of the Sisters of the Divine Savior.