If you are age 70½ or older, you can make tax-free charitable gifts of up to $100,000 per year directly from your IRA to eligible charities, such as the National Lawyers Guild Foundation. Qualified Charitable Distributions satisfy your required minimum distribution while avoiding the potential negative tax consequences that regular IRA withdrawals in retirement can create. The contribution must be made directly from a traditional IRA account by your IRA administrator. Donating IRA assets can be a financially rewarding strategy for both you and the NLG. As always, you should talk with your financial representative or tax adviser before making a decision that alters your tax situation.
To qualify:
- You must be age 70½ or older at the time of gift.
- Contributions must be made directly from a traditional IRA account by your IRA administrator to the National Lawyers Guild Foundation.
- Gifts must be outright. Distributions to donor-advised funds or life-income arrangements such as charitable remainder trusts and charitable gift annuities do not qualify.
- Gifts from 401k, 403b, SEP and other plans do not qualify. Ask your financial advisor if it would be right for you to create a traditional IRA account so you can benefit from the IRA Charitable Transfer.
Benefits:
- Satisfy your required minimum distribution for the year.
- Avoid taxes on transfers of up to $100,000 annually.
- Reduce your taxable income, even if you don’t itemize deductions.
- Make a gift that is not subject to deduction limits on charitable donations.
- Further the work and mission of the National Lawyers Guild
How an IRA charitable rollover gift works:
- Contact your IRA plan administrator to make a gift from your IRA to the National Lawyers Guild Foundation. A sample letter to your administrator can be found here.
- Your IRA funds will be directly transferred to our organization to help continue our important work.
- Please note that because IRA charitable rollover gifts reduce your taxable income, they do not qualify for a charitable deduction.
- Please contact nlgfoundation@nlg.org if you wish for your gift to be used for a specific purpose.
Please note: This information is not intended as tax or legal advice. We recommend that you consult with your legal and financial advisors.
