On December 18, 2015 President Obama signed a bill that allows people 701/2 years or older to make an IRA charitable rollover to public charities like Eastern European Mission. It is important to note that an IRA charitable rollover distribution 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 could save you substantially on your income taxes.
Reasons for doing an IRA charitable rollover include:
- Convenience – It is a very simple and easy way to make a gift.
- Standard Deduction Benefit – With an IRA charitable rollover, you may take the standard deduction, and it qualifies as a required minimum distribution (RMD) so it may reduce your taxes.
- Lower Tax on Social Security – An IRA distribution can cause you to pay tax on up to 85% of your Social Security. Using the IRA charitable rollover may lower your income to a level where only 50% of Social Security is taxable.
- Increased Giving Limits – An IRA charitable rollover may allow you to give more than the usual deductible amount of 50% of income without losing tax benefits.
Your IRA charitable rollover gifts this year could be $1,000, $5,000 or any amount up to $100,000 and could help continue funding our Million Dollar Sunday goal of $2.3 million to put Bibles and biblical literature in public school.
Discuss the benefits of an IRA charitable rollover with your CPA or tax advisor. Visit www.milliondollarsunday.org to learn more about the doors God has been opening for placing his Word in public schools in Eastern Europe.