Donate Directly from Your Retirement Account

Whether you itemize tax deductions or not, an IRA Charitable Distribution can be a tax-wise way to give.

Anyone age 70 ½ or above may transfer up to $100,000 each year directly from an IRA (an Individual Retirement Account) to Connecticut Foodshare without having to report the distributed amount as taxable income. In 2015, Congress permanently extended this charitable incentive—something that is referred to as a “Charitable IRA Rollover” or an IRA Charitable Distribution.

Who benefits from making an IRA Charitable Distribution?

In general, donors who:

  • Have a traditional IRA.
  • Are age 70 ½ or above and must take a required distribution from the IRA.
  • Want to make gifts to Connecticut Foodshare.

IRA Charitable Distribution may have tax benefits. After age 70 ½, you may be required to take distributions of taxable income from an IRA. With the “charitable rollover” you distribute $100,000 directly to a charitable organization from your IRA. Since it is not included in your Adjusted Gross Income (AGI), it is not subject to income tax. For some, the lower AGI can have an even greater tax benefit than the charitable deductions they take.

Benefits of an IRA Charitable Distribution will be most attractive if you:

  • Don’t need income from your IRA this year—but are required by law to take distributions, and don’t like the idea of being taxed on them.
  • Don’t itemize your deductions but could benefit from lowering your AGI through a mechanism that does not require an itemized return.
  • Are concerned about increasing your AGI, because it could push you into a higher tax bracket.

To qualify, the distribution must come directly from the IRA provider to Connecticut Foodshare and Connecticut Foodshare may not provide any goods or services in exchange.

Connecticut Foodshare provides information about charitable options to our donors, but we do not provide specific tax or legal advice. Please consult your own advisor about your specific situation.