Reduce Your Taxes with an IRA Charitable Rollover Gift
Margaret, a retired librarian, stayed closely connected to Luther College in her retirement. She volunteered regularly, supported campus initiatives each year, and took great pride in helping Luther students thrive. As her taxes began to rise, she wondered how she could continue giving in a way that fit her fixed income.
- Margaret: "For years, I've enjoyed giving to Luther College. My financial advisor told me that because I was turning 73 this year, I would have to begin taking distributions from my IRA. He also told me that because my income was increasing, my tax rate would too.
After talking with the team at Luther, I discovered I could make my gift directly from my IRA. It allowed me to support the college I care about while also reducing my taxable income."
An individual who is age 73 and older must take a "required minimum distribution" from his or her IRA each year. With the IRA charitable rollover, these individuals can transfer up to $108,000 per year directly to Luther College, and it satisfies their required minimum distribution.
Margaret called her IRA custodian and requested a transfer of $10,000 from her IRA directly to Luther College.
- Margaret: "I knew that I would never use all of the money in my IRA. I was thrilled to learn that a gift from my IRA could reduce my income taxes this year while helping Luther College."
What is an IRA rollover gift?
If you are 70½ or older, an IRA Charitable Rollover is a way to make a gift to support the cause of Luther College from your IRA.
IRA rollover video
Is an IRA rollover gift right for you?
Have you calculated what your IRA required minimum distribution will be this year and how it will affect your taxes? If you have questions about how you can benefit from an IRA rollover, please feel free to contact us.
Please note: The information above is representative of a typical donor and may or may not be an actual donor to Luther College.
