Making a gift to Ark Crisis Child Care Center
through a Charitable IRA Rollover

Receive a Tax Break While Making the World a Better Place for Children

If you are 70 ½, you can gift directly from your IRA. With this gift you can:

·        Qualify for tax breaks on all or part of your minimum distribution requirement

·        Enjoy a quick and easy estate tax reduction

·        Make an instant impact on the lives of children.

For those who qualify, the maximum IRA charitable distribution is limited to $100,000 per tax year. Any distribution in excess of this limit will not qualify for the tax exclusion benefit and will be treated as ordinary income.

The contribution counts towards your required minimum distribution and isn't included in your adjusted gross income (AGI). That could qualify you for tax breaks tied to your AGI and reduce or eliminate taxes on Social Security benefits.

The gift is not taxable if you follow the rules for a qualified charitable distribution (QCD). (This doesn’t apply to a Roth IRA, which has tax-free withdrawals and no required distributions.)

The gift stays out of your adjusted gross income only if you make a direct transfer from your IRA to the charity. It doesn’t count as a tax-free transfer if you withdraw the money first and then make a donation to the charity. Ask your IRA administrator and the charity about making a direct transfer, or you can have the IRA administrator send a check from your account to the charity. If you have check-writing privileges for your IRA, you can write a check to the charity. You can download the sample letter to provide to your IRA administrator.

Sample Letter

Please notify Angie Richards Cheek, Executive Director, at (812) 423-9425 or angierc@arkcrisis.org of your IRA Donation.

Ark Crisis Child Care Center does not provide tax, legal, or financial advice.