For those 70½ years or older, you can support MHLC with an IRA charitable rollover. An IRA charitable rollover, also known as a qualified charitable distribution, can be made for any amount (up to a maximum of $100,000) per year from your IRA directly to Mohawk Hudson Land Conservancy without having to pay income taxes on the gift. Donations up to $100,000 are eligible for this benefit, and you can feel good knowing that you are making a difference toward conservation in the Capital Region!
An IRA Charitable Rollover, also referred to as a Qualified Charitable Distribution, is a simple way for people aged 70½ and older to make charitable contributions using assets in their individual retirement account (IRA) to support organizations in an impactful and timely manner.
You must turn 70½ prior to completing the distribution. Although the RMD is not required until age 72, the IRA Charitable Rollover can be particularly beneficial for donors who do not itemize and instead file the standard deduction.
IRA rollover gifts are generally not deductible – but the money is not included in your income in the first place, which for many people is more favorable than a deduction. Since many people use the standard deduction when filing their taxes, charitable gifts may not provide an additional financial benefit.
No. You can give any amount under this provision, as long as it is no more than $100,000 per year. If your IRA is valued at more than $100,000, you can transfer a portion of it to fund a charitable gift.
If you are age 72 or older, the amount distributed to Mohawk Hudson Land Conservancy will be deducted from your RMD. You can contribute more than your RMD if you wish, up to $100,000. There are some fine points one should discuss in advance with your tax preparer.
No. Transfers must come directly from an IRA or Roth IRA. However, if you have retirement assets in a 401(k), 403(b), etc., you may be able to roll those funds into an IRA, then use the IRA for giving. Please discuss this option with your financial advisor.
In most cases, you should start by contacting your IRA administrator, financial advisor, or accountant to understand what is required to proceed with making an IRA Charitable Rollover gift. If you have an IRA with check-writing features, your check must be made out to "Mohawk Hudson Land Conservancy" and must clear the account by December 31 to count toward the current year’s RMD.
You may request a distribution at any time during the year. If you want your distribution to count toward this year’s RMD, please initiate your transfer as soon as possible and no later than early December to allow ample time for any transfer to be completed. We must receive your gift by December 31 for your donation to qualify this year. If you want to get a jump on the next tax year, initiate a transfer in January.
If you’re at least 59½ years old, you can take a distribution and then make a gift from your IRA without penalty. If you itemize your deductions, you can take a charitable deduction for the amount of your gift.
No matter your age, you can designate Mohawk Hudson Land Conservancy as the beneficiary of all or a percentage of your IRA and it will pass to us tax-free after your lifetime. It’s simple, just requiring that you contact your IRA administrator for a change-of-beneficiary form or download a form from your provider’s website.
Please note: It’s critical to let us know of your gift because many popular retirement plan administrators assume no obligation to notify a charity of your designation. We would love to talk to you about your intentions to ensure that they are followed. We would also like to thank you for your generosity.
For more information, please contact Tara Tornello at 518-436-6346 or email tara@mohawkhudson.org.
The foregoing is intended to convey general information only, and does not constitute legal, tax, or financial advice. Please consult your advisors to be sure a charitable IRA rollover works well for you.
