IRA Charitable Rollover: Additional Way to Give in 2011
ELM is expanding our vision and programming, and we will rely on the generous support of current and new supporters to do so. I wanted to tell our supporters about a special way you or your loved ones can give to ELM in 2011.
Late in 2010, the IRA Charitable Rollover provision was extended through December 31, 2011. This allows the owner of a traditional or Roth IRA to distribute to a public charity up to $100,000 a year without the distribution being included in taxable income. The distribution counts toward the donor’s mandatory withdrawal amount.
Individuals with traditional and Roth IRAs can make direct transfers from such plans to ELM or to our endowment, housed at the Lutheran Community Foundation. Some restrictions apply:
- Individuals must be 70-1/2 or older on the date of the gift (if you aren’t…keep reading for a fun idea!).
- Individuals may give up to $100,000 per year without having to count the distribution / charitable gift as taxable income, but there is no income tax deduction for the gift.
- Charitable gifts must be made outright to the endowment fund by the IRA plan administrator (meaning you direct your IRA manager to send the gift directly to ELM). Lifetime income gifts and gifts to donor-advised funds and supporting organizations do not qualify for this incentive.
Our friends at the Lutheran Community Foundation shared this observation: “Given these parameters, the charitable rollover provision provides the most opportunity for those who must take their required minimum distributions from an IRA, but would prefer to direct it to charity instead. These individuals may have either maxed out on tax deductions or don’t itemize.”
Your gift can be designated where most needed for ELM or could be made to the Lutheran Community Foundation, designated for the ELM Endowment Fund.
Are you thinking, but I’m not 70-1/2 years old? This might be a way for your parents or grandparents to make a special gift to support your passion for Extraordinary Lutheran Ministries. Invite your loved ones to consider a gift in your honor for a special occasion, or just because. For more information about making a qualified charitable distribution from an IRA, please contact your financial planner or Amalia at 563-382-6277.