Vol 19, Issue 4

IRA Charitable Rollover

Believers age 70 ½ and older may make a direct transfer from their traditional IRA to the National Spiritual Assembly for an amount not to exceed $100,000 per year as a non-taxable event. This allows believers who are required to take a minimum distribution to contribute an amount of their choice to the National Baha’i Fund while taking advantage of the tax benefit.

For example, if you take a distribution from your traditional IRA and with that money make a contribution to the Fund, you will still pay taxes on the full distribution amount. However, if you instruct your IRA administrator to transfer the amount of your contribution directly to the National Spiritual Assembly, you will pay taxes only on the part of the distribution that you receive for yourself. As a result, your taxable income will be lowered and there can be additional money left over that can be put towards the Fund.

For more information about the IRA Charitable Rollover, contact the Office of the Treasurer at 847-733-3472 or BahaiTreasurersOffice(at)usbnc.org

Disclaimer: This option is not intended as nor should be relied upon as financial advice. For advice or assistance with your particular situation, please consult a professional advisor.