Story by: Joyce Retz on December 23, 2021
If you like the idea of saving on taxes and supporting Norton Children’s Hospital, an individual retirement account (IRA) charitable rollover gift may make sense for you.
Congress passed a law that gives you this option for your IRA withdrawal. While you must withdraw a certain amount of money from your IRA each year, the IRA charitable rollover gives you a way to avoid paying income taxes and still meet your required minimum distribution.
If you receive annual income from an IRA, you likely are paying more in taxes each year, and failing to withdraw your required minimum distribution can lead to stiff penalties. The good news is that rolling over part or all of your required minimum distribution to a charity like the Norton Children’s Hospital Foundation can help reduce your tax bill while supporting a cause close to your heart.
If you are age 70 or older, you can direct your IRA administrator to distribute a gift from your IRA to Norton Children’s Hospital. Any amount you transfer may count toward your required minimum distribution, and you can direct up to $100,000 to your favorite causes this year.
Your IRA administrator will provide forms and a procedure to help you make a rollover gift. You will not pay income taxes on the amount transferred. Since you are not claiming the transferred amount as income, you will not receive an income tax deduction for your gift.
You also can contact the Norton Children’s Hospital Foundation to direct how you would like your gift to be used.
Want to learn more about how a rollover may help you meet your required minimum distribution and save on taxes? Call the Norton Children’s Hospital Foundation at (502) 629-8060.