Who are especially good candidates for considering an IRA rollover gift?
• Non-itemizers, because the amount is excluded from income; • Persons already giving at the 50% of adjusted gross income deduction limit; • Persons whose income level causes the reduction of their itemized deductions or the phase-out of their personal exemptions; • Persons for whom additional income will cause more of their Social Security income to be taxed; and • Others who have other limits on their deductions that would prevent them from deducting all of their charitable contributions. Note that it is more advantageous to make an IRA rollover contribution from a regular (“traditional”) IRA than a Roth IRA. The reason is the donor or their heirs can already take federal income tax-free withdrawals from a Roth IRA assuming the account has been open for at least five years. These are the basics of the law renewing tax-free IRA gifts, and there may be other benefits to individual donors. Masonic Charities always advises anyone considering a planned gift to consult with their own profe
