PG Calc has provided this information to update changes re; IRA’s. April 2020.
The Coronavirus Aid, Relief, and Economic Security (CARES) Act was signed on March 27, 2020. The CARES Act has been made necessary by a terrible pandemic. We want to bring to your attention several changes pertaining to retirement and tax implications for charitable giving that may affect your situation. As always, you should speak to your tax advisor to see exactly how these changes may affect you. Highlights of the CARES Act include:
- Required minimum distribution (RMD) Suspended — All RMDs from your individual retirement account (IRA), 401(k), or 403(b) have been suspended this year. If your RMD was set to begin in 2020, it is now postponed until 2021. Individuals are still able to take distributions from their accounts if they would like to do so. Although there may no longer be a required minimum distribution, it is still possible to make a qualified charitable distribution (QCD) from your IRA if you are 70 1/2 or older.
- Charitable Deduction — An “above-the-line” adjustment making it possible for non-itemizers who make cash gifts to public charities eligible for charitable deductions up to $300 per individual or $600 per couple. This could decrease your amount of taxable income. Gifts to donor advised funds (DAFs) and supporting organizations (SOs) do not count towards this charitable deduction.
This Information supersedes, for 2020, the material below.
ECUMENICAL OF COMMUNITY OF CHAUTAUQUA
25 Roberts Avenue
P. O. Box 988
Chautauqua, NY 14722
RE: IRA Charitable Rollover – Required Minimum Distribution
The Ecumenical Community of Chautauqua, as a 501(c)(3) non-profit charitable organization is eligible to receive Required Minimum Distributions (RMD) from personal IRA’s. In December 2020 Congress passed the SECURE Act for required minimum distributions (RMD’s) from IRA’s. This provision allows those over age 72 to have a distribution of up to $100,000 made directly from their IRA to a qualified charity, such as ECOC. By not including this income, you may be driving down your overall marginal tax rate.
So if you are……
- 72… and
- Have a traditional IRA or Roth IRA account.
note: (401(k), 403(b), SEP IRA accounts, and other retirement accounts do not qualify.)
- Need to satisfy your required minimum distribution (RMD)… and
- Want to make a charitable gift… and
- Want to avoid having up to $100,000 of your IRA distribution included in your
- You can transfer up to $100,000 directly from your IRA to the Ecumenical Community of Chautauqua, and/or other eligible charitable groups.
- The IRA rollover gift can count toward your Required Minimum Distribution (RMD) if you have not already taken your RMD for the year you make your gift.
- The gift from your IRA will not be available as an income tax charitable deduction;
- The gift from your IRA will be excluded from income.
Have the trustee/administrator of your IRA account make a check to Ecumenical Community of Chautauqua. They will mail it directly to ECOC and ECOC will acknowledge the transfer to donor.
check payable to: Ecumenical Community of Chautauqua
P. O. Box 988
Chautauqua, NY 14722
You may also have the amount transferred electronically to ECOC account. Please contact as below for information on that procedure.
NOTE: The trustee/administrator may charge a fee for the check or electronic fund transfer.
NOTE: donor will receive a 1099-R from IRA Custodian showing total amount distributed from IRA during calendar year including the amount(s) made to qualified charity (ies). The charitable part needs deducted from full amount to get taxable portion. Consult your tax person for proper entry on IRS and state tax forms.
ECOC Federal I.D. Number: 01-0794788
Authorized Contact Person for information or questions or if
Trustee/Administrator has questions:
Robert P. Boell
1048 W. Baltimore Pike, #A412
Media, PA 19063-5280
(during June, July, August contact Bob at ECOC)
Donor: when you have arranged an IRA donation, please contact Bob Boell as above to give a heads up that it is in the works. It is helpful to know the name of the donor and the amount as sometimes these gifts come thru from the transfer agent anonymously. Thank You