by Monique Kleinhuizen, Apex Legacy Consulting
Put down the checkbook and consider a more tax-efficient way of giving. Through an IRA rollover, you can give pre-tax dollars and make your donation go farther.
I have a lot of fond memories of our first years as a married couple. My husband and I bought a fixer-upper that we renovated together as I began my career and he finished his degree. I remember my grandma taking one look at our new home and saying, without an ounce of irony, “Just burn it down!”
We traded in my husband’s SUV for a cheaper, more fuel-efficient beater of a car. We got really good at coupons and cheap dates and figuring out how to make ends meet.
I remember one month, money was particularly tight, and I told my husband the exact amount that we would be short on funds after paying our bills and tuition. The next day, a check arrived out of the blue from an older family member. The amount was within a few dollars of what we needed.
When we asked her about it, she happily told us that she didn’t need her retirement fund income that month, so it became her “blessing fund.” Here was a faithful woman who planned and saved and worked hard her entire life. She was in a unique position to ensure that people she loved, and causes she cared about, would be well-supported. And that day, the Lord showed us just one more amazing way that He provides: through faithful people that love Him and use all their resources to bless others.
People don’t know what they don’t know. In our work as legacy planning consultants, our first bit of advice to new clients is to consider all the ways there are to give charitably and to make the best selection for their age and stage of life. Anyone can write a check, but there are unique, more tax-efficient giving options available, too, especially for older donors!
Consider giving through an IRA Rollover, and you’ll decrease your tax liability while maximizing your gift to a charity like Lutherans For Life.
Why Give Through an IRA Rollover?
- If you’re over 70½, you’ll avoid income tax on transfers of any amount, up to $100,000 per year per person, from your IRA to LFL.
- If you’re over 72, the gift may help satisfy your required minimum distribution (RMD).
- It reduces your taxable income, even if you do not itemize deductions!
- The gift is not subject to charitable deduction limits.
- Help further the mission of Lutherans For Life without using liquid funds.
How to Set Up an IRA Rollover Gift
- Reach out to your IRA administrator to initiate a “rollover” gift. You’ll just need your account number, as well as LFL’s tax ID number (41-1374293).
- Your IRA funds will be directly transferred to the Lutherans For Life ministry to help continue our important work.
- Please contact LFL at 515-382-2077 or info@lutheransforlife.org if you’d like your gift to be used for a specific purpose.