Double Your Benefits: IRA Charitable Rollover

Double Your Benefits: IRA Charitable Rollover


The IRA Rollover. Act now to save on taxes. Your required minimum distribution can make a difference.IRAs are a wonderful retirement planning tool.  For standard IRAs, the money you save is deposited tax free and you pay taxes when you withdraw it in your later years.  Once a person reaches age 70 ½, the IRS requires you to take a “Required Minimum Distribution” (RMD) from your IRA, whether you need that money for living expenses or not. That annual distribution is then taxed to you as ordinary income.

The Protecting Americans from Tax Hikes Act of 2015 allows people who are 70 ½ or older to make a gift of up to $100,000 per year from their RMD to a qualified 501c3 charity, like OSF HealthCare, by “rolling” funds directly from their IRA to the charity. This type of gift saves the donor from a taxable withdrawal.

Here are a couple of things to remember:

  • In order for you to not be taxed for this withdrawal, it is imperative the money is sent directly from your IRA account to the qualified charity.
  • To meet the criteria set forth by the IRS, your gift should be directed to the OSF Healthcare System, FEIN # 37-0813229 and then designated to whatever area of OSF HealthCare you wish to support.

 

Making a gift with an IRA Charitable Rollover can provide important tax benefits to you even if you don’t itemize, while providing critical support for those we serve “with the greatest care and love.”

Please contact the OSF Foundation for more information or visit: http://osflegacyofhope.org/?pageID=158 to learn more.