If you are 70½ or older, rather than simply take your withdrawal this year, you can direct your IRA administrator to distribute a gift from your IRA to the MSU Billings Foundation. Any amount you transfer counts against your required minimum distribution (RMD), and you can direct up to $100,000 to your favorite causes this year.
Are you frustrated by the required minimum distribution rules?
- You must withdraw a portion of your IRA each year based upon your age.
- You must pay income tax on the portion you withdraw.
- You will face stiff penalties if you fail to withdraw your RMD.
By taking a distribution from your IRA this year, you will likely pay more in taxes and may even reach a higher tax bracket. Rolling over part of your IRA’s “required minimum distribution” or “RMD” to a charity like the MSU Billings Foundation can help reduce your tax bill while supporting MSU Billings students. You may not be aware that Congress passed a law that gives you another 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 RMD.
Making an IRA Rollover Gift is Easier Than Ever
- Contact your IRA administrator. Because of the popularity of the rollover, most administrators provide forms and a procedure to help you make a rollover gift.
- You can direct a transfer of up to $100,000 to be made this year from your IRA to a qualified charity.
- You will pay no income taxes on the amount transferred. Note: Because you are not claiming the transferred amount as income, you will not receive an income tax deduction for your gift.
- Please contact us to let us know how you would like your gift to be used.
Contact Jon Egeland, Chief Financial Officer, at firstname.lastname@example.org or 406-657-2931 to learn more about any of these tax-saving options.
This information is not intended as tax, legal or financial advice. Gift results may vary. Consult your personal financial advisor for information specific to your situation. Under federal rules your benefits may be different from this example. Please contact us for your specific benefits.
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