Consider a Qualified Charitable IRA Rollover in 2019
If you are age 70½ or older, you can make direct contributions – up to $100,000 annually – from your IRA to qualified charitable organizations, such as Maryknoll Lay Missioners without owing any income tax on the distributions. This break may be especially beneficial now because of Tax Cuts and Jobs Act (TCJA) changes that affect who can benefit from the itemized deduction for charitable donations.
To qualify this year, the gift needs to be made by December 31, 2019. You will need to direct a transfer of funds from your IRA custodian, payable to a qualified charity such as Maryknoll Lay Missioners (EIN #13-386-4513). A charitable IRA rollover can be counted toward satisfying your required minimum distributions (RMDs) for the year, as long as certain rules are met.
In addition to the benefits of giving to charity, the charitable IRA Rollover excludes the amount donated from taxable income, which is unlike regular withdrawals from an IRA. Keeping your taxable income lower may reduce the impact to certain tax credits and deductions, including Social Security and Medicare.
Also, charitable IRA Rollovers do not require that you itemize, which due to the recent tax law changes, means that you may decide to take advantage of the higher standard deduction but still use the IRA Rollover for charitable giving.
Please consult your tax advisor for details and to determine if your IRA qualifies for charitable IRA rollover.