Using your IRA to achieve your charitable giving goals

02/06/2020

The SECURE Act was enacted
January 1, and with it came the most
significant changes to retirement
plans since 2006. While some
changes impact you, others will
impact the people you name as
beneficiaries.

If you are 70½ years or older, you can transfer up to $100,000 each year from your IRA, tax-free, as a gift to a qualified charitable organization such as the Banner Health Foundation or Banner Alzheimer’s Foundation.

As the account holder, you would normally have been required to take the distribution and first recognize it as income, incurring income taxes, before making the gift. But in 2015, the IRA Charitable Rollover was signed into permanent law, allowing for this tax-free treatment on distributions made directly to qualifying charities.

IRA Qualified Charitable Distribution

Initiating the rollover gift from your IRA is simple: just notify your IRA administrator of your request. Download the sample letter you can customize and use to initiate the transfer to the Banner Health Foundation or to the Banner Alzheimer's Foundation. Charitable rollover gifts also count toward your annual Required Minimum Distribution once you reach age 72.

The Setting Every Community Up for Retirement Enhancement (SECURE) Act enacted on January 1, 2020, brings significant changes to individual retirement accounts. Click here to find out how these changes may affect you and your beneficiaries.

To learn more, contact Christy Atler, Vice President of Development, at 480.710.3059 or christy.atler@bannerhealth.com.