One of the most tax-effective giving strategies has been the Charitable IRA Rollover. Signed into law in 2015, the Charitable IRA Rollover gives taxpayers the opportunity to make charitable gifts from their IRAs.
How does it work?
In the year that an individual turns 72 years old, those with traditional IRAs must begin taking required minimum distributions (RMDs) from their IRAs. These distributions are taxed as ordinary income and increase the recipient’s adjusted gross income.The IRA Charitable Rollover allows individuals to gift all or a portion of your RMD directly to charity (up to $100,000 per person, annually), thus avoiding the need to recognize the money as ordinary income and to pay income taxes on the distribution.Charitable IRA RMD Rollovers must be made directly from an IRA custodian to the Catholic Community Foundation of San Diego in order to qualify for this benefit.