Blair Bulletin

The IRA Charitable Rollover May Be Right For You!
More Money for Your Favorite Charity … Lower Taxes for You!

June 2019

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Here is an important tax-savings strategy that will:

• Exclude up to $100,000 each year from your gross income, plus
• Count toward your IRA Required Minimum Distribution (RMD), and
• Help your favorite charity.

You choose the amount … up to $100,000 per year … without commitment year to year. If you do so, the IRA Charitable Rollover tax break can help you save taxes while helping your favorite charity.

How does it work? You make direct gifts, discretionary up to $100,000 per year, to one or more public operating charities. Contrast that with taking an IRA distribution, paying taxes and then contributing what’s left to your charity.

This way, you don’t declare the IRA distribution as income, thereby reducing your adjusted gross income and having that much more to do good while doing well.

As you may expect, rollover contributions from your IRA to a charity are non-deductible. Remember, you received a deduction as you contributed to your IRA and earnings (hopefully) accrued tax-deferred.

So for a quick summary:

• You must be at least 70½ years of age.
• Your rollover contribution must be made from your IRA (other retirement accounts are not eligible).
• Your distribution must be made directly to your choice of charity by December 31.
• The charity must be an eligible charitable organization (see below for guidance).

For more detail, Click Here ... or better yet, give us a call or drop an email … we’ll respond promptly.


Research before Giving

Before triggering your rollover contribution, be sure that your choice of charity is an eligible tax exempt organization. Best place to start is go “straight to the horse’s mouth” and check with the IRS.

The IRS’s Tax Exempt Organization Search will tell you if your rollover contribution will qualify.

If you choose to use the tool, here are the things to look out for:

• Confirm an organization is tax exempt and eligible.
• Has an organization had its tax-exempt status revoked.
• The list does not include certain organizations that may be eligible including churches, organizations in a group ruling, and governmental entities.
• Organizations are listed under the legal name or a “doing business as” name on file with the IRS.


If any of the foregoing seems unclear as to how it applies to your specific circumstances, please keep in mind that Blair + Assoc can help. Give us a call or drop an email. We’ll respond immediately.