Make a Gift Tax-Free With An IRA
A Tax-Saving Way to Help The Diocese of Fall River, your parish or the Catholic Appeal
You can take advantage of a simple way to benefit the Diocese of Fall River and/or your parish and receive tax benefits in return. Individuals aged 70½ or older can make tax-free gifts of up to $111,000 annually (married couples can each give $111,000, totaling $222,000) directly from an IRA to a qualified charity using a “Qualified Charitable Distribution” (QCD). The funds must be transferred directly from the IRA custodian to the charity. The gift is not included in your adjusted gross income (AGI), which can lower taxes, reduce Social Security taxation, and lower Medicare premiums. If you are 73 or older, this gift counts toward your Required Minimum Distribution (RMD).
For Those 59½ Years Old or Older
If you are at least 59½ years old, you can take a distribution and then make a gift from your IRA without penalty. If you itemize your deductions, you can take a charitable deduction for the amount of your gift.
Why Consider This Gift?
- Your gift will be put to use today, allowing you to see the difference your donation is making.
- You pay no income taxes on the gift. The transfer generates neither taxable income nor a tax deduction, so you benefit even if you do not itemize your deductions.
- If you have not yet taken your required minimum distribution for the year, your IRA charitable rollover gift can satisfy all or part of that requirement.
- An IRA rollover allows people age 70 ½ and older to reduce their taxable income by making a gift directly from their IRA.
Benefits of a Charitable IRA Rollover:
- Avoid taxes on transfers of up to $111,000 from your IRA to an organization
- Satisfy your required minimum distribution (RMD) for the year
- Reduce your taxable income, even if you do not itemize deductions
- Make a gift that is not subject to the deductions limits on charitable gifts
- Help further the work and mission of The Catholic Foundation of Southeastern Massachusetts and the Diocese of Fall River
How a Charitable IRA Rollover gift works:
- Contact your IRA plan administrator to make a gift from your IRA to us
- Your IRA funds will be directly transferred to our organization to help continue our important work
- Please Please call 508-675-1311 or email giving@catholicfoundationsema.org if you wish for your gift to be used for a specific purpose
Frequently Asked Questions
I’ve already named the Diocese of Fall River and/or my parish as the beneficiary of my IRA. What are the benefits if I make a gift now instead of after my lifetime?
By making a gift this year of up to $111,000 from your IRA, you can see your philanthropic dollars at work. You are jump-starting the legacy you would like to leave and giving yourself the joy of watching your philanthropy take shape. Moreover, you can fulfill any outstanding pledge you may have made by transferring that amount from your IRA as long as it is $111,000 or less for the year.
I’m turning 70 ½ in a few months. Can I make this gift now?
No. The legislation requires you to be 70 ½ by the date you make the gift.
I have several retirement accounts—some are pensions and some are IRAs. Does it matter which retirement account I use?
Yes. Direct rollovers to a qualified charity can be made only from an IRA. Under certain circumstances, however, you may be able to roll assets from a pension, profit sharing, 401(k) or 403(b) plan into an IRA and then make the transfer from the IRA directly to a charity. To determine if a rollover to an IRA is available for your plan, speak with your plan administrator.
Can my gift be used as my required minimum distribution under the law?
Yes. If you have not yet taken your required minimum distribution, the IRA charitable rollover gift can satisfy all or part of that requirement. Contact your IRA custodian to complete the gift.
Do I need to give my entire IRA to be eligible for the tax benefits?
No. You can give any amount under this provision, as long as it is $111,000 or less this year. If your IRA is valued at more than $111,000, you can transfer a portion of it to fund a charitable gift.
I have two charities I want to support. Can I give $111,000 from my IRA to each?
No. Under the law, you can give a maximum of $111,000. You can give to more than one charity in any combination, but the total combined cannot exceed $111,000.
My spouse and I would like to give more than $111,000. How can we do that?
If you have a spouse (as defined by the IRS) who is 70½ or older and has an IRA, he or she can also give up to $111,000 from his or her IRA.
It is wise to consult with your tax professionals if you are contemplating a charitable gift through your IRA. Please feel free to contact Mim Sherman, CEO of The Catholic Foundation of Southeastern MA at 508-985-6510 or msherman@catholicfoundationsema.org with any questions you may have.