February 11, 2016
On December 18, President Obama signed legislation that allows you to make a tax-free gift to MPA from your IRA. Known as the IRA charitable rollover, this law has been made permanent, allowing you to plan to make a gift from your IRA knowing that it will be tax-free.
If you are 70 ½ years of age, you are required to take a minimum annual distribution from your IRA which will be taxed. If you make a gift directly from your IRA to MPA you will not be required to pay taxes on this portion of your distribution. With this in mind, the easiest and smartest gift possible might be the one you make from your IRA.
Easy, because you need only notify your fund administrator that you would like your gift to be transferred directly to Mounds Park Academy.
Smart, because your IRA gift will have the greatest impact possible since it will not be diminished through taxation.
Here’s How it Works:
– If you are 70½ or older, you can give up to $100,000 directly from your IRA to charities such as MPA.
– The transfer generates neither taxable income nor a tax deduction, so you still benefit even if you do not itemize your tax deductions.
– If you have not taken your required minimum distribution for the year, your IRA charitable rollover gift can satisfy all or part of that requirement.
– The gift must be transferred directly from your IRA to MPA.
We thank you for considering this opportunity to make a difference for the students of Mounds Park Academy. If you have any questions please contact us at:
LaTasha St. Arnault
Director of Development
651-748-5532
latasha@moundsparkacademy.org
As always, we encourage you to consult your advisor when making any financial decisions.
