The Charitable IRA Rollover Is Back — For Good!
On December 18, 2015, President Obama signed legislation that reinstated and made permanent the Charitable IRA Rollover. If you are 70½ or older, you can make a tax-free gift directly to KQED from your Individual Retirement Account (IRA) now and for years to come. It’s a smart way to enjoy tax savings and support the mission of public media for the Bay Area.
Here’s how it works:
- Who? You must be 70½ or older to make an IRA rollover gift to KQED.
- What? You can give up to $100,000 from your Traditional or Roth IRA.
- How? Instruct your plan administrator to send a specific dollar amount directly to KQED. (You cannot withdraw the funds yourself.) Your IRA administrator can send the gift by check or electronic transfer. You can contact KQED (see below) for a sample letter of instruction. Please let us know of your charitable intentions so we can ensure your gift is processed in an accurate and timely manner.
- When? Anytime! But your gift must be completed by December 31 in order to receive the maximum benefits for the current tax year.
Benefits to You:
- RMD. Your donation will count towards your required minimum distribution for the current year.
- Tax Savings. You can exclude up to $100,000 of this gift from your federal gross income — resulting in lower taxable income and possible tax savings ($200K exclusion may apply for taxpayers who are married and filing a joint return).
Tip: This tax savings is especially valuable to donors who are non-itemizers and donors who have reached their limit on itemized charitable deductions.
- Impact. You will have the personal satisfaction of benefiting our community more than you may have originally thought possible.
Please consult with yourfinancial advisor about this special opportunity. For more information, please contact the appropriate KQED representative:
- KQED Leadership Circle – gifts of $500 to $1,499 firstname.lastname@example.org, 415-553-2345
- KQED Major Gifts – gifts of $1,500 and above email@example.com, 415-553-2300
- KQED Legacy Society – Endowment gifts through the Charitable IRA Rollover and Legacy gifts through retirement plan beneficiary designations firstname.lastname@example.org, 415-553-2230
Estate Gifts From IRAs Also a Great Idea
While Charitable IRA Rollover Gifts allow donors to further their philanthropic goals and reduce taxable income, designating charitable organizations as beneficiary of IRA, 401(k), pension or other retirement plans also has its benefits. For many years advisers have been telling clients that IRAs are the very best asset to leave to worthwhile organizations in their estate plans. Income taxes and — for large estates — estate taxes and generation-skipping transfer taxes can markedly reduce the retirement savings accounts of many people at death, leaving a much reduced amount for heirs.
A more satisfying option might be to designate a charity as a beneficiary of all or part of your retirement account and preserve the gifted funds free from estate and income tax, while leaving other, more favorably taxed assets for heirs. To make KQED a beneficiary of your retirement plan, simply ask the trustee or custodian of your account for a beneficiary designation form and list KQED Inc.