New Tax Law Allows Your RMD to Really Make a Difference

If you are over 70½ years of age and have an IRA, you can now make a tax-free rollover gift of up to $100,000 to Jewish Federation of Greater MetroWest NJ or fund an endowment fund at the Jewish Community Foundation (JCF) without triggering income tax.

Thanks to the “Protecting Americans from Tax Hikes (PATH) Act” of 2015, which President Obama signed into law in December, the amount you transfer may satisfy your entire Required Minimum Distribution (RMD) and is TAX FREE. Even though the money is coming from your IRA, it is excluded from your taxable income, and, now that the law is permanent, transfers can be made at any time.

Please note the following guidelines for making an IRA Charitable Rollover gift:

• Must be 70½ years old or older
• The IRA transfer must go directly from your IRA to Federation or JCF
• Married couples may each donate up to $100,000 from individual IRA accounts
• The gift must be an outright gift. (Transfers of IRA gifts to donor advised funds, supporting organizations, charitable gift annuities, or charitable remainder trusts do not qualify. The gift is not eligible for an additional charitable income tax deduction.)

If you qualify, consider using the IRA Charitable Rollover to:

• Fulfill a pledge to Federation for the 2016 UJA Campaign
• Create an Annual Campaign Endowment
• Increase your legacy by adding to an existing endowment

To make an IRA Charitable Rollover, contact your IRA provider for their instructions or personalize this sample letter with your instructions and send to your IRA provider. To authorize a wire transfer from your IRA account to JCF, call (973) 929-3113.