IRAs can now qualify for tax-free charitable distributions
For years, estate planners have recommended that retirement accounts may be the most tax-effective asset in larger estates to distribute to charity. These assets may not only be vulnerable to heavy taxation as part of an estate but can also be taxed again as income on the tax return of the heirs.
Thanks to legislation passed in December of 2015, if you are an American senior age 70 ½ or over, you can make the gift of a lifetime by giving your IRA to charity without federal tax penalty. Individuals can transfer up to $100,000 from IRA accounts directly to a qualifying charity. Now your retirement funds can go further than ever before.
The Community Foundation of the Mahoning Valley can help with an IRA transfer by connecting you to the causes you care about most. By giving through CFMV, your gift will always be relevant to ever-changing community needs, including future needs that often cannot be anticipated at the time your donation is made.
CFMV staff understand our Valley’s most pressing issues and can help you establish a fund* to make an impact in areas of need or opportunity that are important to you. Here are three great ways to turn your IRA, or a portion of your IRA into community good:
- CFMV Community Impact Fund – Address a broad range of current and future needs in Mahoning and Trumbull counties. CFMV will make grants to organizations that address priority needs and special projects identified by the Foundation and the community.
- Field of Interest Funds – your gift can be targeted to the cause most important to you, for example, arts & culture, education, community well-being, or women and girls. CFMV will award grants to high-impact projects and programs.
- Designated Fund – support the work of a specific non-profit organization. CFMV will invest your gift for long-term growth and issue distributions to your favorite non-profit on a regular basis in perpetuity.
To learn more, contact your financial planning expert, then call the Community Foundation of the Mahoning Valley at 330.743.5555.
*Current law does not allow you to set up a donor-advised fund or contribute to a supporting organization with IRA transfers. Contact your financial planner for more detailed information.