Giving Season: Treat a Charity and Yourself with an IRA Rollover

posted by Mindy Gress on Friday, November 23, 2018

‘Tis the Giving Season! As we seek the “perfect gift” for a loved one, we carefully consider each individual’s interests and needs to find the right present that is a great fit for them and for our budget.

The process for determining our personal charitable giving is quite similar. What does your favorite charity need? What type of gift best suits your budget?

If you have reached your senior years, often your income is fixed yet you have other assets available to give as gifts.  Just as you might give your grandchild a treasured family heirloom, delighting the recipient and downsizing your collection, you can make a charitable gift that also benefits the charity, is budget-friendly and can also provide direct tax advantages for you.

I would like to highlight a provision in the tax law which may be of benefit to any donors 71.5 years and older, called the qualified charitable distribution.

The qualified charitable distribution, or IRA Rollover, allows you to make a charitable contribution directly from your IRA, of any amount up to $100,000 per taxpayer, each year.  The amount distributed directly from your IRA to a qualified charity, like the Spencer Regional Healthcare Foundation, will count toward your Required Minimum Distribution (RMD), and is excluded from income.  In addition, qualified charitable contributions lower adjusted gross income, which in turn may help you with other tax benefits or deductions. 

If this gift seems like it may fit in nicely with your annual giving, please visit with your professional advisor. And, if you decide to take advantage of the QCD to meet your 2019 RMD, be sure your payment is made directly from your IRA to the Spencer Regional Healthcare Foundation. Our tax ID is 42-1416816. For questions, please contact the Foundation office at 712-264-6226.

We thank you in advance for your generous gift which will be used to enhance care through the purchase of new technologies, healing programing and supporting patients. A gift that benefits health is always a “perfect gift.” Happy holidays!

About The Author

Mindy Gress

Mindy Gress serves as the Executive Director for the Spencer Regional Healthcare Foundation matching donor passion with the greatest needs of healthcare and services of Spencer Hospital.