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Read the thoughts and impressions on a variety of topics written by Denise K. Spencer, President and CEO of the Community Foundation as well as occasional guest bloggers.

 

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Is 70 ½ Your Lucky Number?
By Denise K. Spencer / November 28, 2018


There are many people for whom a particular number is considered either lucky or unlucky. For my father, he always considered the number 9 to be an unlucky one. He claimed that whenever something bad happened to him, it had something to do with the number 9. And God rest his soul, he died on April 19, 1999 at the age of 69. 

Others have lucky numbers that they swear by, and figure heavily in choosing a home (the address must be right), or a wedding date, or even when playing blackjack or buying a lottery ticket.  

So how might 70 ½ be your lucky number? Did you know that individuals age 70 ½ can make a tax-free gift of up to $100,000 from their IRA to Community Foundation of the Lowcountry – in support of an existing fund or to establish a fund to support their favorite charitable cause(s)? And that means, of course, that a married couple could possibly claim up to $200,000 tax-free!

Who Qualifies?

  • Individuals age 70 ½ and older may transfer up to $100,000 per year from an IRA to charity, tax free.

Benefits of IRA Rollover Gifts:

  • By using pre-tax IRA assets, your charitable gift costs you less.
  • The IRA Charitable Rollover is not subject to income taxes.
  • The amount of your IRA Charitable Rollover can be used to meet your annual required minimum distribution, lowering your taxable income for the year.

Who Should Consider an IRA Charitable Rollover?

  • Individuals age 70 ½ and older who may want to use their required minimum distribution for charitable giving.
  • Spouses who both have IRA accounts and don’t need the income to support daily living expenses. Each spouse can transfer up to $100,000 tax free from their IRA(s).
  • Generous donors who may give more to charity than they can deduct in a tax year because IRA Charitable Rollovers are exempt from federal income taxes.  
  • Donors who regularly give a portion of their income to charity and do not itemize deductions.
  • Individuals who wish to remove up to $100,000 from their taxable estate(s).

Gifts May Be Used To:

  • create a new charitable fund at the Community Foundation, or
  • support an existing fund.  

Exclusions: 

Donor Advised Funds and Private Foundations do not qualify to receive IRA Charitable Rollover gifts.

Get Lucky!
So at a time when the new tax laws may make itemization more difficult for some individuals/families, 70 ½ might be a lucky number for both individuals and couples of that age or older, as well as the charitable causes they most care about. Therefore, live generously, and don’t pay any more in income tax than is required of you. 

Contact Emmy Rooney, VP for Development and Donor Services at 843-681-9100 for more information and to take advantage of your new lucky number! 

Denise K. Spencer
President and CEO
 

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Community Foundation of the Lowcountry

Mailing Address
P.O. Box 23019
Hilton Head Island,
South Carolina 29925

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Hilton Head Island,
South Carolina 29926
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