Southeastern Synod ELCA

Giving Opportunities: Using an IRA Rollover

October 25, 2016

Opportunities to give are provided by God. Tax legislation is provided by the government and legislation simply facilitates giving. The IRA Rollover is intended to do exactly that for people who want to give away assets they have accumulated within their Individual Retirement Accounts.

Using an IRA for giving via this method completely excludes your gift from your income stream. In other words, it helps with taxes by allowing you to lower your income and reduces any taxes you might pay on Social Security and other income. However, you must act before the end of the year to secure this favorable treatment for 2016.

Here are the rules Congress enacted last year to make this opportunity for giving possible. You may give to any charitable cause that has tax exempt status. However, you must make your gift through your fund administrator: The gift itself never enters the donor's bank account.

--If  you are 70 1/2 or older, you can give up to $100,000 each year directly from your IRA to charities including churches.

--The transfer generates neither taxable income nor a tax deduction, so you still benefit even if you do not itemize your tax deductions.

--Your IRA charitable rollovergift can satisfy all or part of your required minimum distribution for the year.

--The transfer may be made in addition to any other charitable giving you have planned.

 Giving through this method is not difficult, but you MUST follow the rules that Congress established last year with this legislation. Thank you for your giving and participation in this opportunity to share God's mission in the world. God's blessings!

Written by the Rev. Dr. Mark A. Scott
Interim Pastor
Holy Trinity Lutheran Church
Marietta, GA