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May 21st

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Make a Lasting Gift From Your IRA: Charitable Rollover Extended to December 31!


ira charitable rollover bannerIf you dream of making a lasting difference, and perpetuating your values beyond your lifetime, you can support the mission of Lutheran Social Services by making a tax-efficient gift of IRA assets. The IRA Charitable Rollover allows individuals age 70½ and older to transfer up to $100,000 from an IRA to LSS, avoid income tax on the distribution and support the LSS mission: to break the cycle of child abuse by empowering children, families and communities. On December 16, the Senate passed a bill which included a one-year extension of expired tax provisions retroactive to January 1, 2014. This reauthorizes the IRA charitable rollover through Wednesday, Dec. 31, 2014.

Consider the following charitable options with an IRA Charitable Rollover:

• Establish a Permanent Endowment Fund at LSS

• Contribute to an existing Endowment Fund at LSS

• Make an outright gift to LSS

Important Information:

Eligibility Age. Taxpayers age 70½ and older are required to make annual distributions from their IRAs which are then included in the taxpayers’ adjusted gross income (AGI) and subject to taxes. The IRA Charitable Rollover permits those taxpayers to make donations directly to charitable organizations from their IRAs without counting them as part of their AGI and, consequently, without paying taxes on them.

Annual Cap. Total combined charitable IRA rollover contributions cannot exceed $100,000 in any one year.

Eligible Charities. Charitable contributions from an IRA must go directly to a public charity like LSS that is not a supporting organization. Contributions to donor-advised funds and private foundations, except in narrow circumstances, do not qualify for tax-free IRA rollover contributions.

Eligible Retirement Accounts. Distributions can only be made from traditional Individual Retirement Accounts or Roth IRAs. Charitable donations from 403(b) plans, 401(k) plans, pension plans, and other retirement plans are ineligible for the tax-free treatment.

Distributions to LSS. Distributions must be made directly from the IRA trustee payable to Lutheran Social Services of the South.

No Gifts in Return. Donors cannot receive any goods or services in return for charitable IRA rollover contributions in order to qualify for tax-free treatment.

Written Receipt. In order to benefit from the tax-free treatment, you must obtain written substantiation of each IRA rollover contribution from each recipient charity. Your window of opportunity is short! Please contact us if we can answer any questions by calling David Kahle at 512-706-7501 or 800-938-5777, or by emailing [email protected].

Remember, this opportunity is available only through Wednesday, Dec. 31, 2014. You also should talk with your tax adviser about any possible state tax implications of a charitable IRA rollover.

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