The L.E. Phillips Senior Center is the main resource and place to go for successful aging. It meets the social, emotional, and physical wellbeing needs of the 50+ community. Successful aging creates a positive ripple effect in terms of the health of our senior population. That creates less strain on public and private resources.
(Source: Eau Claire Community Foundation)
The IRA Charitable Rollover allows individuals aged 70 ½ or older to make direct transfers from their IRAs to qualified charitable organizations. Each transfer has a maximum of $100,000 ($200,000 per couple) in any one year. Transfers can be made in more than one installment and can go to multiple charities. Donors with retirement assets in 401k, 403b, or similar accounts must first roll those funds into an IRA and direct the IRA administrator to transfer the funds from the IRA directly to a public charity.
What charities can receive an IRA charitable rollover?
IRA charitable rollover gifts must be made directly to a 501(c)(3) public charity such as the Eau Claire Community Foundation. The foundation accepts IRA charitable rollover transfers to start new funds or add to existing funds, like the Fit for the Future fund.
What are the tax implications of IRA charitable rollover gifts?
Because the transfers occur directly from donors’ IRAs to qualified charities, donors don’t have to count the transfers as taxable income for federal tax purposes. IRA charitable rollover transfers can count as a donor’s required minimum distribution (RMD) for the year. IRA charitable rollover transfers cannot be made to charitable gift annuities or charitable remainder trusts.
Can an IRA charitable rollover benefit a donor advised fund?
No. Donors would first have to withdraw the funds from the IRA and recognize those distributions as income. Then they can deposit the distribution into a donor advised fund and calculate their charitable deduction according to the general rules pertaining to percentage limitations and itemized contribution reductions.
How do I initiate an IRA charitable rollover to the Eau Claire Community Foundation?
You must contact your IRA administrator/coordinator to initiate the transfer to the Foundation. ECCF also encourages you to notify the Foundation that you are making an IRA charitable rollover.
Did you know?
An IRA charitable distribution is a better option for donors who regularly give a portion of their income to charity and do not itemize deductions.
Donors may want to consider the Eau Claire Community Foundation as a beneficiary of their IRA because the IRS may impose taxes of up to 60 percent on IRA funds not distributed during their lifetimes.
When Donors add the Foundation as a beneficiary, they become members of their Legacy Society.
ECCF encourages Donors to visit with their financial and legal advisors to determine which charitable giving strategies are best for them.