IRA Charitable Rollover

IRA Charitable Rollover

A Special Opportunity for Those 70.5 and Older

IRA Charitable Rollovers are a great way for individuals age 70½ or older to use their IRAs to maximize their charitable impact. You can give any amount (up to a maximum of $100,000) per year from your IRA directly to a nonprofit without having to pay income taxes. 

Why Consider This Gift?  

Your gift will be put to use today, allowing you to see the difference your donation is making. 

Benefits: 

  • Tax-free RMD lowers your AGI - may have beneficial impact in other tax areas such as taxation of Social Security benefits of Medicare Part B premiums 
  • Avoids AGI threshold for charitable gifts 
  • May benefit state taxes since some states do not allow residents to deduct a charitable contribution 
  • May benefit legacy planning by preserving assets, which may benefit from step-up in cost basis while the IRA is taxable to heirs 

By reducing your IRA balance, a QCD may also reduce your taxable income in future years, lower your taxable estate, and limit IRA beneficiaries' tax liability.  

Requirements: 

  • At age 70 ½ and older, you can give any amount up to $100,000, penalty-free, without having to pay income taxes
  • At age 59 ½ and older, you can take a distribution up to $100,000 to use as a gift without penalty and you can take your gift as a charitable deduction.  
  • Distribution must be sent directly to a qualified charity 
  • Limit of $100,000 annually per IRA owner and can include the required minimum distribution (RMD) 

Logistics: 

We recommend direct transfers to realize the greatest benefit. Please contact us at 617-502-8763 so we can provide detailed instructions for your transfer. 

Children’s Trust 
55 Court Street, 4th floor 
Boston, MA 02108  
Tax ID: 04‐3123184