2015 IRA Gift Opportunity
Congress has just reinstated a law that allows you to make a tax-free gift to qualified nonprofit organizations such as Lutheran Hour Ministries (LHM) from your IRA. Under the recently reinstated law, you may move up to $100,000 from your IRA directly to a qualified charity such as LHM without having to pay income taxes on the money.
Commonly known as the IRA Charitable Rollover, this law has been reinstated for 2015 and is retroactive back to January 1. Even better, the IRA Charitable Rollover has been made permanent for 2016 and beyond!
- To take advantage of the gift opportunity, do not take a distribution and then make a gift. You must complete a gift to LHM by providing your IRA administrator with a letter of request for a charitable rollover from your IRA. LHM can provide you with a sample letter and directions (see below) for submitting your request. A copy of your request letter should also be sent to LHM so your gift can be properly credited
- The annual gift limit is $100,000 to all charities per person, per IRA.
- You must be 70½ by the gift date to be eligible for the IRA gift opportunity.
- The gift needs to be made by Dec. 31, 2015 if you want your gift to qualify this year.
- The rollover gift will not be included in your income for income tax purposes. And the rollover gift is not tax deductible.
- If you have not taken your required minimum distribution (RMD) for the year, your IRA charitable rollover gift can satisfy all or part of that requirement.
- The transfer may be made in addition to any other charitable giving you have planned.
- Most gifts are tax-free. Please contact your tax advisor to confirm.
- The rules apply only to outright lifetime transfers from IRA owners and are not applicable to transfers after the owner’s death.
- If there is more than 10 years’ difference between you and your spouse, different rules apply. Please contact us for more information.
DOWNLOAD 2015 IRA ROLLOVER REQUEST LETTER
If you have already made a qualifying gift in 2015, contact your advisor to make sure your gift is properly reported on your 2015 income tax returns. For additional information or for a sample copy of an IRA Rollover Request Letter, please contact Lutheran Hour Ministries’ Ministry Advancement Officers at 1-877-333-1963 or send an e-mail to firstname.lastname@example.org, or you can download them below:
These materials do not constitute tax or legal advice and are offered for illustration purposes only. You are always encouraged to consult your own financial or legal advisor.