Charitable IRA Rollovers
Thanks
to recent legislation, you can donate up to $100,000 tax free from your IRA(s)
this year if you are age 70½ or older. The contributions must be made directly from your IRA to qualified charitable organizations before January 1, 2008.
A
donation made from your IRA can’t also be deducted as a charitable contribution
on your tax return because that would provide a double tax benefit.
Source: The Wall Street Journal (August
9, 2006)
When I was a pastor, I was concerned
about bringing people to Christ, but realized that in order to do that, I
needed finances to fund the new and existing programs and initiatives. I dreamed of receiving large donations
whether from someone’s business, a windfall or an inheritance. As an individual, I want to give more than I
currently can. I would love to be able
to give more to my church in order to change lives and impact people for
Christ.
The holiday season is under
away and we have a unique way of supporting the ministries we love in greater
ways than we will ever be able to again.
Here are some new federal tax rules you should know about before you
make a donation.
Tax-free distributions from individual retirement accounts
(IRAs). If you’re age 70½ or older, you can
donate up to $100,000 from traditional and Roth IRAs to qualified charities in
2007 without having to pay tax on the distributions. Keep in mind that
contributions must be transferred directly from the IRA to the charity. Before
you arrange for the transfer, make sure the charity you’ve chosen is eligible.
The tax benefits of making a
donation from your IRA are:
- it won’t be subject to the charitable
contribution percentage limits
- it won’t increase your adjusted gross income
(AGI)
- it will count towards your required minimum distribution (RMD)
for the year.
The question then is, “How as a
pastor, can I promote this idea?” The
first thing I would do is add this article to my newsletter. I would also add link to this letter on my website. You could also make a brief announcement from
the pulpit.
As an individual, one can give
IRA funds this way. All it takes is a
call to your financial advisor and he/she can take care of the rest (except
signing to transfer the money to your church).
This is a unique opportunity to
give more than we normally could, save taxes and benefit ministry.
For
more information, call or e-mail me at 916-789-2518 and bennett5000@aol.com.
