Dear donors and supporters,
I hope you are having a wonderful week between the hustle and bustle of children going back to school, vacations and trips winding down, and preparations being made for the future.
Speaking of planning for the future, I’d like to take a focused opportunity this week to highlight one of our planned giving options for your consideration and future planning – the IRA charitable rollover.
If you are over 70½, you are eligible to make an IRA charitable rollover to public charities like the Hartnell College Foundation. The good news is that your IRA distribution to charity will be similar to other IRA rollovers – it will not be included in your Federal taxable income.
While there is no added deduction for an IRA charitable rollover, avoiding up to $100,000 of taxable income may save substantial income taxes not otherwise available.
Who may want an IRA rollover? Charitable IRA rollovers will be popular for these reasons:
1. Convenience – It is a very simple and easy way to make a gift.
2. Standard Deduction Benefit – With an IRA charitable rollover, you may take the standard deduction and still receive benefits for your gift. Because the IRA rollover may satisfy your RMD, it may reduce your taxes.
3. Lower Tax on Social Security – Because of an IRA distribution, you may be paying tax on 85% of your Social Security. Using the IRA charitable rollover may lower your income and only 50% of Social Security is taxable.
4. No Giving Limits – With an IRA charitable rollover, you may give more than the usual deductible amount.
Your IRA charitable rollovers this year could be $1,000, $5,000 or any amount up to $100,000. We recommend that you discuss the benefits of an IRA rollover with your CPA or tax advisor.
VP Advancement and Development
Executive Director for Hartnell College Foundation
P.S. If you or your advisor would like to receive IRA Gifts information, please call me at 831-444-2446 or email me at email@example.com.