Don't Miss Out on IRA Tax Benefits

Tax day is just two weeks away, and each year about 20% of Americans find themselves in the unenviable position of owing the IRS. If you’re staring down a big tax bill this year, you might want to plan ahead for next year by taking advantage of the Charitable IRA Rollover.

After several years of extensions, Congress made the Charitable IRA Rollover permanent last December, creating a permanent tax benefit for donations to charity made directly from a donor’s retirement account. People who own traditional IRAs and are aged 70 ½ or older are required to make annual withdrawals, a transaction known as a Required Minimum Distribution (RMD), or they will face stiff penalties from the government. Since RMDs count towards a taxpayer’s income, they also increase tax liability.

Now, thanks to the new law, IRA owners can exclude up to $100,000 a year from their income if their IRA distributions are donated directly to charity (like The Arc, for example). According to Forbes.com, the IRA rollover is a win-win for all. “For taxpayers who don’t normally itemize their deductions and so don’t get to deduct their contributions anyway, it’s a winner, and for taxpayers who usually do itemize, it may also leave them ahead.”

While this benefit is a powerful incentive, we know that charitable donations have more to do with mission than tax benefits. At the end of the day, the Charitable IRA Rollover is another tool to help the charities that serve your community. Whether you are currently supporting The Arc or another charity, and you’re planning to make a donation in 2016, please take a moment to consider whether a gift from your IRA is right for you.

How to Make an IRA Rollover Gift to The Arc

To make an IRA rollover gift, simply contact your IRA account manager and request that an amount be transferred to us. Your gift could be $1,000, $10,000, $50,000 or even up to $100,000. Contact us to learn more about how you can redirect unneeded IRA income to The Arc to promote achievement and opportunity for people with intellectual and developmental disabilities.

Make a Difference in Your Community!

If you are not ready to make a gift to us from your IRA this year, consider making a charitable bequest. A bequest of part or all of your IRA permits you to make full use of your funds during your lifetime, with the remainder benefitting The Arc. Once again, donating all or part of your IRA to charity will ensure that your assets won’t be diminished by unnecessary taxation. Your plan custodian can provide you with a form to designate us as a beneficiary of your IRA. For more information on making a bequest, check out www.arcjc.org/legacy, or email Genni Williams at genni@arcjc.org.