OKUMF- Age has its benefits

11/10/2017

Those among us who are age 70 1/2 or older have a wonderful benefit. Congress has made permanent the law that allows us to make cash gifts directly from our IRAs to our churches and favorite United Methodist ministries.

How does this benefit you?

Each year you are required to take a minimum distribution from your IRA.  This is taxable income that may move you into a higher tax bracket; it may cause more of your Social Security to be taxed, and it may have other negative tax consequences.  By making a direct gift from your IRA to your church or favorite United Methodist ministries, the amount of the gift is excluded from income and satisfies the annual IRA required minimum distribution (RMD), up to the amount transferred.  You can make up to $100,000 in annual IRA charitable distributions.

Qualified Charitable Distribution

The charitable IRA rollover is technically known as QCD (qualified charitable distribution).  It makes sense to make charitable gifts in this manner.  The amount of the QCD is excluded from income, which lowers your adjusted gross income.  There is not a charitable deduction because that would be double-dipping.  For many, this is the best tax-wise way to give.

It is very simple to do

The QCD should be payable to the Oklahoma United Methodist Foundation Inc. and mailed to 4201 Classen Blvd., Oklahoma City, OK 73118-2400.  Send a copy of your instructions to your IRA custodian at the Foundation by email (dbattles@okumf.org) or fax (405-896-5027).  On the copy of the form, please note how the proceeds are to be disbursed.  Currently there is no coding on the 1099-R for a QCD.  You will need to give your CPA a copy of the tax letter that will be sent to you from the Foundation.  

This is a great year-end planning strategy!

Call or email David Battles at 800-259-6863 or dbattles@okumf.org
to learn how we can help you empower your giving in a way that benefits you and supports the causes you care about.
 

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