• Habitat Staff

IRA Charitable Rollover: A tax-smart way to support Habitat!

Updated: Sep 1, 2020

IRA Charitable Rollover

You may be looking for a way to make a big difference to help further the Habitat mission. If you are 70½ or older, you may also be interested in a way to lower the income and taxes from your IRA withdrawals. An IRA charitable rollover is a way you can help continue our work and benefit this year.

Finding a New Tax-wise Way to Give

By using an IRA Charitable Rollover for giving, you are able to:

  • Avoid income tax on the funds transferred from your IRA

  • Satisfy your required minimum distribution (RMD) for the year

  • Reduce your taxable income, even if you do not itemize deductions

  • Give more to help support individuals and families in Central Arkansas

Know the Rules

Here are a few things to know about the IRA Charitable Rollover:

  • You must be 70 ½ or older at the time of the gift

  • Funds must be transferred from your IRA directly to a qualified nonprofit

  • The maximum rollover is $100,000 for a single person or $200,000 for a couple filing jointly

  • Gifts to Donor Advised Funds or life-income arrangements (such as charitable gift annuities) do not qualify

To get started, contact your professional advisor or IRA administrator. It’s important to talk with them about the IRA Charitable Rollover rules and how they fit with your overall plan. During this conversation, you may also inquire about naming a charitable organization as a beneficiary of your IRA, which can reduce the tax burden for heirs.

Contact Habitat for Humanity of Central Arkansas for more information or visit: HabitatCentralAR.org/Other-Ways-to-Give to learn more. Look to the official IRS website for the most up-to-date information available.

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