With the latest tax reform, it has become more advantageous for some people to make charitable gifts from their IRA. To do so, the person must be over age 70 1/2. Gifts of up to $100,000 per year can be made directly to the charitable organization from the IRA and excluded from ordinary income. Therefore, someone who does not itemize their deductions can take the standard deduction and make their gift without it being included in their income.
Some eigible clients may want to make both large and small gifts from their IRAs. To simplify the process, clients can have a checkbook linked to their IRA. They could write checks from this checkbook to any qualified organization whether it be annual gifts to their church, a once a year donation to a community foundation, or a gift to fulfill a pledge. For larger or ongoing gifts, clients should contact their advisor so we can make sure that cash is available in the account. If you would like to have the checkwriting option on your IRA, please contact your advisor to see if it is appropriate for you.