Using Retirement Assets for Kingdom Purposes

Are you 70 ½ or older? Consider making a tax-smart IRA gift to New Life!

A Qualified Charitable Distribution (QCD), or IRA Rollover, is one of the most tax-efficient ways for generous donors to turn their retirement assets into an impactful gift.
You can make a difference by initiating a QCD from your IRA today:

  • The distribution must be made from a traditional IRA (not SEP or SIMPLE IRAs).
  • You must be at least 70 ½ years of age when the distribution is made.
  • You can donate up to $100,000 per year without including the distribution in your gross income.
  • The distribution counts toward your annual required minimum distribution (RMD), when applicable. Note: RMDs have been suspended for 2020.

This giving opportunity benefits you and New Life at the same time.

Other Benefits of IRA Charitable Rollovers:

  • IRA Rollovers are technically called Qualified Charitable Distributions (QCD) and are excluded from the donors adjusted gross income.
  • Only IRA distributions that would be included as taxable income if withdrawn by the account holder count as QCD’s and can be excluded from income. If donors choose to distribute nontaxable IRA funds to a charity, they may still be able to claim a charitable tax deduction for the amount of the gift.
  • Charitable rollovers of funds are not included as part of the donor’s maximum allowable charitable tax deductions. This means that IRA rollover gifts do not count toward 50 percent of their adjusted gross income limitation on charitable gifts of cash.
  • The IRA Charitable Rollover also may be helpful if you claim the Standard Deduction on your tax return. It effectively gives the tax benefit of a charitable gift without requiring you to itemize your taxes. You get both the Standard Deduction plus the benefits of the Charitable Rollover.

Want to learn more? Get in touch with your IRA administrator today or contact Tammy Kocher, Executive Director, at tammy@nlfs.org or (612) 746-5664 for additional information.