Reduce your taxes with an IRA gift

11/4/2016

A charitable IRA rollover (quali‌fied charitable distribution) makes sense this year! If you are like many people, with the new tax law, you could be paying higher taxes in 2016. By transferring some of your IRA required distribution to your church or other Methodist ministries, you can lower your taxable income. With lower taxable income, you could reduce your income and capital gains taxes.

A simple way to give

In December 2015, Congress made the charitable IRA rollover permanent. If you are age 70 1/2 or older, you can make a charitable gift of up to $100,000 from your IRA. Your gift will quality for your required minimum distribution, and you will not have to pay federal income on the amount given from your IRA to a charitable organization.

To make an IRA rollover gift, simply contact your custodian and request that an amount be transferred to the Oklahoma United Methodist Foundation. Then contact us and tell us how you want your gift to be used. We will write the tax letter required by the IRS for your 2016 tax file.

Naming a beneficiary

If you are not ready to make a current gift from your IRA, consider naming your church or other United Methodist ministries as a beneficiary. A gift of part or all of your IRA permits you to make full use of your funds during your lifetime. Your favorite United Methodist ministry will benefit in the future from the remainder. Your plan custodian can provide you with a form to designate the ministry or ministries as the beneficiary of your IRA. Many use the Oklahoma United Foundation as the beneficiary and, through an agreement with us, you indicate the ministry or ministries you want your gift to support.

The Oklahoma United Methodist Foundation can assist you in making a gift of your IRA and accomplishing your goal. Please contact David Battles, CPA, at 800-259-6863 or dbattles@okumf.org.

 

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