Are you at least 70 and a half years old?

If so, you can make tax-free gifts directly from your IRA. Your gift to WCNY will never count as income but always make a difference.

Make your gift to WCNY today. For more information, contact your
IRA plan administrator and Mary Jo Barnello at WCNY at (315) 385-7309….(read more)

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IRA Charitable Rollover 2018: A Win-Win Solution for Charitable Giving

As we enter a new year, it is essential to stay updated on the latest regulations and opportunities that may impact our financial decisions, including charitable giving. One such opportunity that can make a positive impact in both the lives of charitable organizations and taxpayers is the IRA Charitable Rollover.

The IRA Charitable Rollover is a provision that allows individuals aged 70½ or older to donate up to $100,000 from their Individual Retirement Accounts (IRAs) directly to qualifying charitable organizations without incurring tax penalties. This provision was initially introduced in 2006, extended, and has now become permanent as part of the Protecting Americans from Tax Hikes (PATH) Act of 2015.

This provision is especially significant for individuals who have accumulated a substantial IRA balance and are looking for tax-efficient ways to support the causes they care about. By making a charitable donation directly from their IRA, individuals can benefit from several advantages.

First and foremost, the IRA Charitable Rollover reduces taxable income. Traditional IRA distributions are generally taxable, and individuals are required to pay taxes on the amount withdrawn. However, by making a qualified charitable donation through the IRA Charitable Rollover, the donated amount is excluded from taxable income, providing a tax advantage for the donor.

Moreover, the IRA Charitable Rollover satisfies the Required Minimum Distribution (RMD) requirements. Once individuals reach the age of 70½, they are mandated to withdraw a minimum amount from their IRAs each year. Failure to meet these requirements may result in significant tax penalties. By opting for the IRA Charitable Rollover, individuals can fulfill their RMD obligations by making a donation to a qualifying charitable organization, thus avoiding penalties while supporting causes close to their hearts.

Another advantage of the IRA Charitable Rollover is that it allows taxpayers who do not itemize deductions to receive a tax benefit. Typically, charitable contributions are deductible only if individuals itemize their deductions on their tax returns. However, the IRA Charitable Rollover provides an opportunity for individuals to make donations directly from their IRA and still receive tax benefits, even if they don’t itemize.

Charitable organizations also benefit from the IRA Charitable Rollover provision. By receiving direct donations from individuals’ IRAs, these organizations can secure critical funding for their programs and projects. This provision enables donors to make more substantial contributions, as they can use their tax savings to give even more to their preferred charities.

As the fiscal year progresses and individuals plan their philanthropic strategies, it’s crucial to consider the IRA Charitable Rollover as a viable option. This provision allows individuals to support the causes they care about while maximizing the impact of their donation through tax advantages. It is recommended to consult with a financial advisor or tax professional for guidance on how this provision can be leveraged within individual financial situations.

While the provision has become permanent, it is essential to stay informed about any updates or changes to the regulations. The IRA Charitable Rollover is indeed a win-win solution for both donors and charitable organizations, encouraging continued generosity and promoting the well-being of communities and causes worldwide.