Special Tax-Free IRA Gifts

By Scott Oats

The Grace United Methodist Church Foundation would like to remind you about a special gift opportunity for those aged 70½ or older.  It is once again possible to make tax-favored “Qualified Charitable Distributions” from traditional IRA accounts.

A total of up to $100,000 can be transferred each year directly from your traditional IRA to one or more qualified charities such as Grace Church Foundation or Grace Church -- free from federal income tax.  Amounts given this way will count towards your required  minimum distribution (RMD) for the year the gift is made and be excluded from federally-taxable income.

To make such gifts, it is important to not withdraw funds prior to a gift but have the gift amount distributed directly from an IRA to one or more qualified charities. For those with check-writing privileges on their accounts, this may be the most efficient way to make gifts directly from an IRA to the Grace Church Foundation.

With the 2018 federal tax law changes, many people will not be able to deduct charitable contributions. By using a “Qualified Charitable Distribution,” your gift will be excluded from your federally-taxable income.  This could also have a favorable impact on Medicare costs.
Please check with your IRA administrator or your tax advisor for more information.  You can also find more detailed information in IRS Publication 590-B.

Contact Scott Oats, President of the Foundation Board (soats@sbcglobal.net) or (630-355-4716) for questions about giving to the Foundation.