IRA Stock Donations

Tax Savings from a Donation Right from your IRA

eggnestCLICK HERE TO VIEW INSTRUCTIONS FOR SECURITIES TRANSFERS

If you’re over the age of 70½, you’re required to take minimum distributions each year from your IRA, and you have to pay income tax on those distributions. But the “charitable rollover” law lets you transfer assets from your IRA to a charity, and whatever amount you transfer reduces the amount you’re required to withdraw. So if you’re required to withdraw $20,000 in 2019, but you instead donate $20,000 to charity, you don’t have to withdraw any funds for yourself, and you don’t have to pay any income tax.

You won’t get a charitable deduction for the amount you donate in this way. However, donating directly from an IRA may be better than taking a distribution and then making a donation, because it results in a lower adjusted gross income – which can help you avoid taxes on Social Security benefits, reduce your Medicare premiums, limit the 3.8% surtax on investment income, and qualify for other deductions and credits.

In addition, donating from an IRA is definitely to your advantage if you otherwise wouldn’t be eligible for a charitable deduction, either because you don’t itemize your deductions or because you’re subject to the charitable deduction “phase-out” for higher-income taxpayers.

To make a cash contribution to Holy Family from your IRA, have your IRA administrator send the check to Holy Family, attention Bernie Schaeffer. 

If you will be donating stock or other securities from your IRA, you should follow the directions found by clicking the button below. 

CLICK HERE TO VIEW INSTRUCTIONS FOR SECURITIES TRANSFERS

 

Source: Law Offices of Robert J Ross

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