Special Bulletin: 2016 Taxes, Charitable IRA Rollover
You may need to roll some money out of one of your traditional IRAs or Roth IRAs to meet the annual minimum required distribution (MRD). Here is how a charitable gift IRA rollover works. If you are 70-1/2 years of age or older, you may be able to make a distribution from your IRA for up to $100,000 to a charity such as Mission to Children in 2016. The funds must go directly from your IRA trustee payable to Mission to Children in order to qualify for a tax-free rollover.
While there is no charitable deduction for you, the tax-free rollover will count toward your annual MRD, and there is no income to report from deferred gains related to the amount donated.
If you do not have a personal tax advisor, National Christian Foundation may be able to help you. Their overall creative solutions help Christian givers experience less paperwork, fewer taxes, more joy, and more impact for the charities they really care about such as Mission to Children. And most importantly they share a Biblical view on generosity.
Here’s what you can do:
- Consult your tax advisor how the rules for charitable IRA rollovers apply to your specific tax situation.
- If you do not have a tax advisor, call the National Christian Foundation at 1-800-681-6223. Designate Mission to Children as the recipient charity.
Mission to Children is an accredited ECFA member charity.
