Make a Gift Tax-Free through your IRA
If you are 70½ years old or older, you can take advantage of a simple way to make a gift to the Catholic Foundation for the Diocese of Scranton and receive tax benefits in return. You can give up to $100,000 from your IRA directly to a qualified charity such as ours without having to pay income taxes on the money.
Why Consider this Gift?
- You pay no income taxes on the gift. The transfer generates neither taxable income nor a tax deduction, so you benefit even if you do not itemize your deductions.
- If you have not yet taken your required minimum distribution for the year, your IRA charitable rollover gift can satisfy all or part of that requirement.
Frequently Asked Questions
Q. I’m turning age 70½ in a few months. Can I make this gift now?
A. No. The legislation requires you to reach age 70½ by the date you make the gift.
Q. I have several retirement accounts—some are pensions and some are IRAs. Does it matter which retirement account I use?
A. Yes. Direct rollovers to a qualified charity can be made only from an IRA. Under certain circumstances, however, you may be able to roll assets from a pension, profit sharing, 401(k) or 403(b) plan into an IRA and then make the transfer from the IRA directly to the Catholic Foundation for the Diocese of Scranton. To determine if a rollover to an IRA is available for your plan, speak with your plan administrator.
Q. Can my gift be used as my required minimum distribution under the law?
A. Yes, absolutely. If you have not yet taken your required minimum distribution, the IRA charitable rollover gift can satisfy all or part of that requirement. Contact your IRA custodian to complete the gift.
Q. How much do I need to give from my IRA to be eligible for the tax benefits?
A. You can give any amount under this provision up to $100,000.
Q. I have two charities I want to support. Can I give $100,000 from my IRA to each?
A. No. Under the law, you can give a maximum of $100,000. For example, you can give each organization $50,000 this year or any other combination that totals $100,000 or less. Any amount of more than $100,000 in one year must be reported as taxable income.
Q. My spouse and I would like to give more than $100,000. How can we do that?
A. If you have a spouse (as defined by the IRS) who is 70½ or older and has an IRA, he or she can also give up to $100,000 from his or her IRA.
Next Steps
- Contact James Bebla, Executive Director of the Catholic Foundation for the Diocese of Scranton at 570-207-2212 or Jbebla@catholicfoundationscranton.org for additional information on giving an IRA gift.
- Seek the advice of your financial or legal advisor.
- Ask your IRA administrator about making a direct transfer to the Catholic Foundation for the Diocese of Scranton or have the administrator send a check from your account to us. (To be tax-free, the donation must sent directly from your account administrator to the Catholic Foundation for the Diocese of Scranton.)
Legal Name: Catholic Foundation for the Diocese of Scranton
Address: 300 Wyoming Avenue, Scranton, PA 18503