Want to put your IRA to work for All Newton?
IRA Giving Incentives:
The opportunity to make charitable gifts directly from Individual Retirement Accounts (IRAs) has been made permanent by legislation passed in December 2015. This means you can make annual distributions of up to $100,000 to charities such as All Newton Music School tax free.
Donating through an IRA Charitable Rollover is a win-win for and your favorite community music school.
You’ve got questions, we’ve got answers.
Q: Who qualifies?
A: Individuals who are age 70.5 or older at the time of the distribution (you must wait until at least 183 days after your 70th birthday to make the transfer.)
Q: How much can I distribute?
A: You may contribute a maximum of $100,000 per year per individual. These qualified charitable distributions count toward your required minimum distribution. Note: Spouses can each transfer this amount from their separate IRAs.
Q: From what accounts can I make distributions?
A: Distributions must come from your IRA(s) directly to charity. Retirement assets in 401(k), 403(b), SEP, or SIMPLE plans etc. do not qualify.
Q: To which charities can I make gifts?
A: Tax exempt organizations like ANMS to which deductible contributions can be made.
Q: How will ANMS treat the gift?
A: You will receive full gift credit for the entire amount given to ANMS.
Q: What are the tax implications for me?
Federal - You do not recognize the distributions as income, provided they are made directly from your IRA to ANMS. However, since there is no tax on the withdrawal, you are not entitled to a charitable income tax deduction for your gift.
State - Each state has different laws, so you will need to consult with your own advisors. For example, some states which have a state income tax may treat the distribution as income, with or without an offsetting charitable deduction.
Q: What is the procedure to execute an IRA charitable rollover?
A: You will need to contact your plan administrator for specific details. You should decide how you would like it to be designated.