Rotary Foundation
Posted by Bob Ruehl on Nov 01, 2016
Build a better future through charitable planning with The Rotary Foundation.
Charitable IRA gifts — and their tax benefits, are here to stay!
For those age 70½ and older, it is now possible to make tax-free charitable gifts directly from Individual Retirement Accounts (IRAs). This giving option had been available at times in the past and was made permanent in December 2015. If you have a traditional IRA, you can now make gifts directly to The Rotary Foundation using funds that might otherwise be taxed when withdrawn. You may choose to make charitable gifts directly from an IRA up to a total of $100,000 per person, per year. By giving directly from your IRA, you also won’t increase your adjusted gross income or possibly subject your Social Security to a higher level of taxation.
Another advantage: Your gift will count toward your Required Minimum Distribution and you can avoid taxes on income while you help Rotary improve communities around the world.
Supporting the Annual Fund with his IRA
Past District Governor Gerald (Jerry) Gortner understands the benefits of giving through an IRA more than many. That’s because he spent 43 years as a financial advisor for Ameriprise Financial Services. “I had helped many clients who were over 70 make their charitable contributions directly through their IRA,” Jerry said.
“It was a way for them to achieve their charitable goals, and it provided helpful tax benefits.” A Rotarian since 1983 who recently retired, Jerry now takes his own advice and makes his gifts to Rotary directly from his IRA. “I think this type of gift makes the most sense for those who are already in the habit of making charitable contributions,” Jerry explained. “So instead of using other income to make your gift, you make the gift directly from your IRA. My IRA gifts have been active contributions that go directly into the Annual Fund, so I receive Paul Harris Society membership and major donor status.” “My biggest personal satisfaction comes from helping someone achieve their goals,” Jerry said, recalling as an example one Rotarian he worked with to fund a gift supporting the fight against polio. “This happened to be during a matching period,” Jerry said. “When we told her how many children she had been able to benefit through her gift, it brought tears to her eyes. It is so gratifying to help others accomplish their dreams through Rotary.”
Prevent double taxation on inheritances
If you leave retirement funds to your heirs, the funds can be subject to both estate tax and income tax. On the other hand, if heirs receive their inheritances from other assets, only estate tax — if applicable — may be due on amounts passing to them. Therefore, you may prefer to leave your retirement plan to The Rotary Foundation while using other assets to provide for heirs. This way you may reduce the overall tax burden on your family and create a personal, lasting legacy with Rotary.
How do I get started?
Click here
<http://echo4.bluehornet.com/ct/91070947:Tn74c5YNy:m:1:995544817:BFA6DB709B2AAACE1A75980B9EEE27D3:r> for an easy-to-use IRA transfer form.
For more ways to give using retirement assets, please contact the Planned Giving Officer for your area at 847-866-3100 or planned.giving@rotary.org
Check out more planned giving resources on our website
www.rotary.org/plannedgiving
This publication provides general gift, estate and financial planning information. It is not legal, accounting or other professional advice. For assistance in planning charitable gifts, please use the services of appropriate advisors. Consult an attorney for modifications to or the creation of a will or other legal document. Tax benefits vary per each individual's situation. Some opportunities may not be available in all states. For more information, contact planned.giving@rotary.org
or 847-866-3100.
For those age 70½ and older, it is now possible to make tax-free charitable gifts directly from Individual Retirement Accounts (IRAs). This giving option had been available at times in the past and was made permanent in December 2015. If you have a traditional IRA, you can now make gifts directly to The Rotary Foundation using funds that might otherwise be taxed when withdrawn. You may choose to make charitable gifts directly from an IRA up to a total of $100,000 per person, per year. By giving directly from your IRA, you also won’t increase your adjusted gross income or possibly subject your Social Security to a higher level of taxation.
Another advantage: Your gift will count toward your Required Minimum Distribution and you can avoid taxes on income while you help Rotary improve communities around the world.
Supporting the Annual Fund with his IRA
Past District Governor Gerald (Jerry) Gortner understands the benefits of giving through an IRA more than many. That’s because he spent 43 years as a financial advisor for Ameriprise Financial Services. “I had helped many clients who were over 70 make their charitable contributions directly through their IRA,” Jerry said.
“It was a way for them to achieve their charitable goals, and it provided helpful tax benefits.” A Rotarian since 1983 who recently retired, Jerry now takes his own advice and makes his gifts to Rotary directly from his IRA. “I think this type of gift makes the most sense for those who are already in the habit of making charitable contributions,” Jerry explained. “So instead of using other income to make your gift, you make the gift directly from your IRA. My IRA gifts have been active contributions that go directly into the Annual Fund, so I receive Paul Harris Society membership and major donor status.” “My biggest personal satisfaction comes from helping someone achieve their goals,” Jerry said, recalling as an example one Rotarian he worked with to fund a gift supporting the fight against polio. “This happened to be during a matching period,” Jerry said. “When we told her how many children she had been able to benefit through her gift, it brought tears to her eyes. It is so gratifying to help others accomplish their dreams through Rotary.”
Prevent double taxation on inheritances
If you leave retirement funds to your heirs, the funds can be subject to both estate tax and income tax. On the other hand, if heirs receive their inheritances from other assets, only estate tax — if applicable — may be due on amounts passing to them. Therefore, you may prefer to leave your retirement plan to The Rotary Foundation while using other assets to provide for heirs. This way you may reduce the overall tax burden on your family and create a personal, lasting legacy with Rotary.
How do I get started?
Click here
<http://echo4.bluehornet.com/ct/91070947:Tn74c5YNy:m:1:995544817:BFA6DB709B2AAACE1A75980B9EEE27D3:r> for an easy-to-use IRA transfer form.
For more ways to give using retirement assets, please contact the Planned Giving Officer for your area at 847-866-3100 or planned.giving@rotary.org
Check out more planned giving resources on our website
www.rotary.org/plannedgiving
This publication provides general gift, estate and financial planning information. It is not legal, accounting or other professional advice. For assistance in planning charitable gifts, please use the services of appropriate advisors. Consult an attorney for modifications to or the creation of a will or other legal document. Tax benefits vary per each individual's situation. Some opportunities may not be available in all states. For more information, contact planned.giving@rotary.org
or 847-866-3100.