Tax-Free Giving with IRA

AdobeStock_40426303.jpegWhen we think of charitable giving, the first thing that comes to mind is writing a check. However, there are more effective ways to give to causes you love while maximizing your tax incentives. Legislation was recently made permanent that offers numerous tax benefits to those who give to charity through their IRA accounts.

Unless your IRA is as Roth, the account owner must take required distributions every year after age 70 1/2 and pay tax on withdrawals. With the charitable IRA rollover, the gift can count towards the minimum required distribution. If you meet the criteria below and would like to learn more, please consult your tax advisor.

What qualifies?
The distribution must be:
- from a traditional or ROTH IRA
- Direct from the IRA trustee to the charitable organization
- On or after the IRA owner has reached age 70 1/2
- Given to a qualifying organization like CRFA

Alternatively, a gift of appreciated stock enables you to take a charitable deduction for the fair market value of the stock and avoid the capital gains tax you would pay if you sold the shares and then later wrote a check to donate the proceeds.

If you have any questions, please reach out to