Planned Giving

Are you age 70½ or older, have an IRA, a spirit of giving AND want to save money on your taxes?

If yes, use your IRA account for charitable giving. It counts toward your required minimum distribution — reducing your adjusted gross income and saving taxes.

Simply contact the financial institution holding your IRA and instruct them to make a qualified charitable distribution to the charity(ies) of your choice. You can save income tax on this charitable gift — even if you do not itemize on your tax return. Additionally, the reduction of adjusted gross income may reduce the taxation of Social Security benefits, the cost of Medicare, any deductibility “floors” limiting certain expenses (e.g., 7.5 percent for medical expenses in year 2023) and various other tax-related items.

While the IRA charitable rollover provides unique tax benefits not found with other types of gifts, there are some requirements and restrictions. You must be age 70½ or older at the time of the gift and are limited to $100,000 you can transfer to qualified public charities each year. Additionally, it is required that the gift come directly from the IRA administrator to the charitable organization. You can’t receive your distribution and then pass it on to the charity. Lastly, the charity cannot have provided you with any goods or services in exchange for the IRA charitable rollover.

Additionally, to take advantage of a complimentary values-based estate planning process that United Church Homes is making available to you, contact our Advancement Team.