IRA Charitable Rollover

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Generous giving and tax benefits – rolled into one.

IRA charitable rollovers are an excellent giving option for seniors. If you are over 70 1/2 years old, you can give a tax-free distribution from your IRA to qualified charities. The limit is $100,000 for individuals and $200,000 for couples. Your gift can satisfy your IRA’s required minimum distribution (RMD) while lowering your adjusted gross income (AGI) for tax purposes.

IRA-Charitable-Rollover-Graphic-(No-Loop)

Key Benefits

Reduce Your Taxable Income

This investment can lower your annual tax burden by reducing your income for the year.

Give Back With Retirement Savings

IRA charitable rollovers give you greater flexibility in supporting ministry with retirement funds.

Satisfy IRA Requirements

IRAs have complex rules that govern minimum distributions. An IRA charitable rollover can help you satisfy your annual IRA distribution requirements.

Start Here

Your IRA can fund more than your retirement – it can also bolster Gospel-minded ministry with needed financial support.

1

CONNECT WITH US
Virtually, by phone or in-person, our giving professionals are ready to help.

2

INITIATE YOUR ROLLOVER
We’ll gather information and draft documents to help you make your gift. Choose a ministry to receive your gift and make a qualified charitable distribution from your IRA.

3

DO GOOD
Enjoy potential tax advantages and feel good knowing your gift is supporting ministry and advancing God’s Kingdom.

Giving Scenarios

Required Minimum Distribution (RMD)

The amount of money you are required to withdraw from your IRA every year after you turn 70 1/2.

Qualified Charitable Donation (QCD)

A charitable donation that counts toward your RMD.

 

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An IRA Charitable Rollover May Be Perfect If:

You have significant assets in your IRA.

Your Social Security income is taxable.

You want to make gifts that are large relative to your income.

You do not itemize your taxes.

Go Deeper

Tax Impacts

A charitable IRA rollover allows donors age 70 1/2 or older to transfer up to $100,000 directly from the donor’s IRA to a qualified charity each year. While you do not receive a charitable income tax deduction for the gift transfer, you benefit from not having to recognize the gift transfer as taxable income. In other words, instead of receiving a charitable income tax deduction, you altogether avoid claiming the funds as income in the first place.

Fees

There is no fee associated with the rollover itself. Any fees depend on what the donor decides to do with their charitable rollover. While you cannot place the rollover into a DAF, you can place it into an endowment, custodial account or just request that WatersEdge send the funds outright to a charity.

Minimums

There are no minimums associated with an IRA charitable rollover.

Investment Options

Investment options depend on what type of gift vehicle you place the rollover into.

What Assets Can Fund This Gift?

Contact your IRA administrator and let them know that you’d like to execute a charitable IRA rollover, and the administrator will send the check directly to WatersEdge.

FAQ

1. How much can I contribute from my IRA to charity?

Individuals can contribute up to $100,000 ($200,000 for couple filing jointly) from an IRA directly to charitable causes. This type of gift is known as a qualified charitable distribution (QCD) and can satisfy your IRA’s required minimum distribution (RMD). 

2. What is the tax incentive of IRA contributions?

No tax is incurred on the withdrawal from your IRA, so these gifts do not qualify for an income tax charitable deduction. However, they have the benefit of lowering taxes by reducing your adjusted gross income (AGI). Unlike many other charitable gifts, this tax strategy can benefit you even if you do not itemize.

3. How should IRA contributions be made to charity?

Funds from your IRA should be given directly to WatersEdge to benefit the ministry or ministries you choose to support. If you withdraw funds first and then make the donation, the gift will not qualify as a tax-free transfer.

Create Your IRA Charitable Rollover today

Review Your Giving Options

When you give generously, the details make all the difference. It’s important to keep in mind your family situation, tax considerations and charitable goals.

Make the right choice with a simple side-by-side comparison.