It’s humbling to see the dedication and support they have for the UCH mission to transform Aging by building a culture of community, wholeness and peace. While often the focus is on the residents, UCH also looks for ways to care for its supporters. That is why we strive to educate our supporters on the most efficient ways to give. This allows supporters’ hard-earned dollars to go further toward helping their families and the community.
In recent years, there has been a lot of talk about the IRA Charitable Rollover that was made a “permanent” part of our U.S. tax code at the end of 2015. Still, many of the individuals I meet within Ohio and across the country don’t take advantage of it. The IRA Charitable Rollover can be a great benefit, especially to those who don’t itemize on their tax returns.
Steven and Lori are a great example. They always have been faithful donors but didn’t give enough to exceed the standard deduction. They have been meticulous savers and worked hard to build up their retirement nest egg. When they reached the age of 70 ½, they were required to take distributions from their IRA. However, instead of taking the full distribution themselves, they directed a portion to the charities they were supporting.
By utilizing this giving technique, Steven and Lori now were giving more efficiently. Since they didn’t itemize, they normally lost out on the charitable deduction. Because the IRA Charitable Rollover allowed them to avoid counting the IRA distribution to charity as income, they were able to avoid paying income tax on this portion. Additionally, this reduced their adjusted gross income and could help reduce the taxation of other items, as well.
While the IRA Charitable Rollover provides unique tax benefits, there are some restrictions. You must be 70 ½ or older at the time of the gift and there is a limit of $100,000 that can be transferred to qualified public charities each year. It also is required that the gift come directly from the IRA administrator to the charitable organization. Lastly, the charity cannot have provided you any goods or services in exchange for the gift.
Thompson & Associates
Values-Based Estate Planning
United Church Homes is pleased to offer our friends and supporters a complimentary, values-based estate planning service from an expert estate planning advisor. Paul Grassmann, from Thompson & Associates, visits Ohio monthly to meet with and assist families or individuals as they navigate through various practical, emotional, and legal issues.
If you are interested in learning more about this service, or scheduling an appointment with Paul, please contact Gloria Hurwitz, vice president of advancement at firstname.lastname@example.org or 740.751.8702.