IRA Charitable Rollover: Another Opportunity to Give
“I have always believed in the fine work of Greensboro Urban Ministry, I have seen the ministry grow and become very effective in serving the poor of our city. The IRA charitable rollover was a great way to support Urban Ministry and also get a tax benefit” according to Ralph Walker, former board member and long-time supporter.
The fiscal cliff deal has a special tax break for cash donated by seniors to charity in 2013.It’s a variation on the so-called IRA charitable rollover–an on again, off-again rule, first introduced in 2006, that allows people 70½ and older to transfer as much as $100,000 per year from their traditional IRAs to charity. The provision last expired at the end of 2011. In the tax deal enacted recently, Congress has extended it through 2013.
Unless an IRA is a Roth, the account owner must take yearly minimum required distributions starting at age 70½ and pay tax on the withdrawals. With the charitable IRA rollover, as it is called, the donation can count against the minimum required distribution they would otherwise be required to take.
Here’s how this must usually be done: Instead of taking money out of an IRA, the owner asks the custodian of the account to send a certain sum directly to charity. A number of Urban Ministry donors have used this IRA rollover to benefit our ministry.
Ralph made his IRA Rollover gift the end of 2012. If you are interested in learning more about the IRA Charitable Rollover or have other questions about planned giving opportunities at GUM, please contact Executive Director, Rev. Mike Aiken, 553-2639.