IRA Charitable Rollovers – A Tax-Saving Way to make an Impact

If you have a traditional Individual Retirement Account (IRA) and are 70 ½ years old or older, you can take advantage of a gift to the Michigan Masonic Charitable Foundation directly from your IRA and possibly reap tax benefits in return.

Once you turn 70 ½, the IRS requires you to take a required minimum distribution (RMD) from your IRA, whether you need that income or not. If you do not take your RMD, you are penalized up to 50% of the amount of that RMD; if you do take the distribution, you pay your normal income tax rates on it. However, the IRS allows you to have your IRA pay your RMD, or any amount up to $100,000 to a qualifying charity like the Michigan Masonic Charitable Foundation and you pay no penalties or income taxes on the gift.

A direct rollover from an IRA is an exceptionally flexible way to help support your Masonic family through the MMCF:

  • You can make a charitable rollover gift from an IRA that you have already designated the MMCF as the beneficiary of. Your rollover gift ensures that you maximize your legacy of giving by avoiding taxes or penalties.
  • Although a charitable rollover must come from a traditional IRA, you may be able to convert assets from a pension, profit sharing, or other retirement plan into an IRA to realize the charitable and tax benefits available. You will want to discuss this with your plan administrator, financial advisor or attorney.
  • You may divide your charitable rollovers among any qualifying charitable organizations that are important to you in addition to the MMCF, as long as the total charitable rollover for the year does not exceed $100,000
  • If your spouse also has an IRA and is 70 ½ years old or older, he or she can also make a charitable rollover of up to $100,000 from their IRA.

Next Steps

  1. Contact the Michigan Masonic Charitable Foundation at 1-800-994-7400 or via email at giftplanning@mmcfonline.org for more information on IRA charitable rollovers and how your rollover gift can have the greatest impact and meet your charitable and financial goals.
  2. Contact your IRA administrator for the specific details of your IRA requirements and how to make a charitable rollover to the Michigan Masonic Charitable Foundation.
  3. If you decide to make a charitable rollover to the Michigan Masonic Charitable Foundation, please give the following information to your financial advisor or IRA administrator:
    Legal Name: Michigan Masonic Charitable Foundation
    Address: 1200 Wright Ave., Alma, MI 48801
    Phone Number: 800-994-7400
    EIN: 38-3266089

The information on this web site is not intended to serve as legal, financial or tax advice. Please contact an attorney, financial or tax advisor. Figures in examples are for illustration only. References to tax rates include federal taxes only and are subject to change. Your State’s laws may further impact your individual outcomes.