Giving through IRAs is a great way to support the arts while reducing your tax burden.
You can transfer up to $100,000 tax free from your IRA directly to LA Opera if you meet the following criteria:
- You must be 70 1/2 or older on the day of the gift.
- You transfer up to $100,000 directly from your IRA to one or more qualified charities in the tax year.
- You do not receive any goods or services in exchange for the rollover gifts.
The gift amount will count toward your required minimum distribution in the year you make the gift. The amount won’t be included in your adjusted gross income.
For your ease, click below for a sample letter to your IRA Custodian.
The “Setting Every Community Up for Retirement Enhancement,” or “SECURE” Act went into effect on January 1, 2020, and changes many of the rules governing retirement plans.
The “Setting Every Community Up for Retirement Enhancement,” or “SECURE” Act went into effect on January 1, 2020, and changes many of the rules governing retirement plans. Under the SECURE Act, the charitable IRA rollover, or QCD, remains a great way to make a tax-free gift to LA Opera using your traditional IRA. To qualify:
The SECURE Act increased the age at which you must start taking required minimum distributions (RMD) from 70 ½ to 72. Once you reach 72, one of the benefits of a qualified charitable distribution (QCD) is that it will count toward your RMD. In addition, the SECURE Act also eliminated the stretch IRA* for many beneficiaries. This change means that it may be most tax efficient for you to support LA Opera with QCDs during your life and set aside other assets to pass on to your loved ones. Regardless of your age, your QCD is always a tax-free gift.
* With a few exceptions, children and other non-spouses who are more than 10 years younger than you no longer can stretch their withdrawals over their life expectancies from an IRA they inherit. Instead, they must withdraw and pay income tax on all funds within 10 years.
Plan ahead! You’ll be able to make gifts directly from your IRA every year.
Consider naming LA Opera as a remainder beneficiary of your retirement accounts.
To learn more about IRA gifts, get in touch at 213.972.3141 or firstname.lastname@example.org.