How An IRA Charitable Rollover Can Help You
Save On Taxes

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December 4 

A charitable IRA rollover is a golden opportunity to save on taxes while donating to a cause you care about. Not to mention, you can save thousands of dollars on your taxes every year. To learn more about this strategy, keep reading on to find out how IRA charitable donations work and why they’re worth looking into.

What Is A Charitable IRA Rollover?  

Also known as Qualified Charitable Distribution (QCD), a charitable IRA rollover is a charitable gift you give to a qualified organization or institution.  

To qualify for this provision, you need to:  

• Be 70 ½ or older on the day you made the gift  

• Make the gift to a certified charity or organization 

• Transfer it directly from your IRA 

One of the biggest reasons why retirees do this is the countless benefits they can receive. From tax savings to meeting yearly distribution requirements, a yearly QCD can be a valuable addition to your overall financial strategy.  

Advantages Of Qualified Charitable Distributions (QCDs) 

So, why should you look into making a charitable IRA rollover gift? Here are a few advantages you can benefit from when you make a donation: 

Generous Tax Benefits  

Making a QCD is a simple way to reduce your tax liability. Those extra thousands you donate will also help shave off a portion of your annual gross income. Depending on how much you donate, you’ll lower your tax bracket, avoid paying taxes on SS benefits, and reduce your Medicare premiums.  

It Satisfies Your Required Minimum Distributions (RMDs) 

If you own a traditional IRA, a SEP, a SIMPLE IRA, or another type of employee-sponsored retirement account, the IRS requires you to take out a distribution each year once you turn 73. However, you can use a charitable IRA rollover gift for your distribution requirements. This means you’ll save on taxes while contributing to a cause you care about.  

You Don’t Need To Itemize Deductions 

Itemizing deductions each year could be a pain for many retirees. But with QCPs, you can benefit from a lower tax burden, even if you take a standard deduction. Using this benefit makes it much easier to file each year and eliminates the need to itemize deductions. 

LI Cares Needs Your Help 

Do you want to make an impact and give back to communities in need? Consider making a charitable IRA rollover gift to LI Cares today. Our organization provides support to thousands of families in need across Long Island. Please reach out to us to learn more about our initiatives and how your QCD could help our organization grow.