Make a Gift Tax-Free With An IRA

If you're 70½+ years, there's a simple way to benefit Ronald McDonald House Charities of San Diego and receive tax benefits in return. You can give up to $100,000 from your IRA directly to a qualified charity such as ours, without having to pay income taxes on your withdrawal.

This law* no longer has an expiration date, so you're free to make these gifts anytime during the year or in future years.

Why Consider This Gift?**

  • Your gift will be put to use today, allowing you to see the difference your donation is making.
  • You pay no income taxes on the gift. It generates neither taxable income nor a tax deduction, so you benefit even if you don't itemize your deductions.
  • If you haven't yet taken your required minimum distribution this year, your IRA charitable rollover gift can satisfy all or part of that requirement. It may help you avoid the Medicare high-income surcharge.
  • Making this gift can mean less of your Social Security is taxable.
  • Gifts of $1,000 will qualify you for membership in our Giving Circles.

You can download a sample " Request for Charitable Distribution" to send to your IRA administrator.

Frequently Asked Questions

Q. I've already named Ronald McDonald House Charities of San Diego as the beneficiary of my IRA. What are the benefits if I make a gift now instead of after my lifetime?+

A. By making a gift this year of up to $100,000 from your IRA, you'll see your philanthropic dollars at work. You're jump-starting the legacy you'd like to leave and giving yourself the joy of watching your philanthropy take shape. And you'll fulfill any outstanding pledge you've made by transferring that amount from your IRA, as long as it's $100,000 or less for the year.

Q. I'm turning age 70½ in a few months. Can I make this gift now?+

A. No. The legislation requires you reach age 70½ by the date you make the gift.

Q. I have several retirement accounts—some are pensions and some are IRAs. Does it matter which account I use?+

A. Yes. Direct rollovers to a qualified charity can be made only from an IRA. You may be able to roll assets from a pension, profit sharing, 401(k) or 403(b) plan into an IRA, and then transfer from the IRA directly to Ronald McDonald House Charities of San Diego. To determine if a rollover to an IRA is available for your plan, speak with your plan administrator.

Q. Can my gift be used as my required minimum distribution?+

A. Yes, absolutely. If you haven't yet taken your required minimum distribution, the IRA charitable rollover gift can satisfy all or part of that requirement.

Q. Do I need to give my entire IRA to be eligible for the tax benefits?+

A. No. You can give any amount under this provision, as long as it is $100,000 or less this year. If your IRA is valued at more than $100,000, you can transfer a portion of it to fund a charitable gift.

Q. I have two charities I want to support. Can I give $100,000 from my IRA to each?+

A. No. Under the law, you can give a maximum of $100,000. For example, you can give each organization $50,000 this year or any other combination that totals $100,000 or less. Any amount of more than $100,000 in one year must be reported as taxable income.

Q. My spouse and I would like to give more than $100,000. How can we do that?+

A. If you have a spouse (as defined by the IRS) who is 70½ or older and has an IRA, he or she can also give up to $100,000 from his or her IRA.

Q. How long after I turn 70½ do I have to make the gift?+

A. The first calendar year you turn 70½, you have until April 1 the following year to make your first required distribution. In subsequent years, the deadline is December 31.

*The IRA Charitable Rollover was signed into law in 2015, allowing taxpayers age 70½ or older to transfer up to $100,000 annually from their IRA accounts directly to charity without first having to recognize the distribution as income.
**Please consult your personal tax advisor to confirm your individual circumstance.

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Next Steps

  1. Contact Debbie Kamens at 858-598-2415 or dkamens@rmhcsd.org for additional information on giving an IRA gift.
  2. Seek the advice of your financial or legal advisor.
  3. Ask your IRA administrator about making a direct transfer to the House or have the administrator send a check from your account to us. (To be tax free, the donation must go directly from your account to the House without passing through your hands.) Download a sample "Request for Charitable Distribution" form.

Legal Name: Ronald McDonald House Charities of San Diego, Inc.
Address: 2929 Children's Way, San Diego, CA 92123
Federal Tax ID Number: 95-3251490

Grantor Charitable Lead Annuity Trust

Provides income payments to a qualified charitable organization for a period of years, the lives of one or more individuals or a combination of the two; after which, trust assets are paid to the donor of the trust.

A charitable bequest is one or two sentences in your will or living trust that leave to Ronald McDonald House Charities of San Diego a specific item, an amount of money, a gift contingent upon certain events or a percentage of your estate.

an individual or organization designated to receive benefits or funds under a will or other contract, such as an insurance policy, trust or retirement plan

I hereby bequeath [insert amount, percentage of the estate, or "the rest and remainder of my estate"] to Ronald McDonald House Charities of San Diego, Inc., a not-for-profit corporation, located in San Diego, California, to be used at the discretion of the Board of Trustees of Ronald McDonald House Charities of San Diego. Federal Tax ID #95-3251490

able to be changed or cancelled

A revocable living trust is set up during your lifetime and can be revoked at any time before death. They allow assets held in the trust to pass directly to beneficiaries without probate court proceedings and can also reduce federal estate taxes.

cannot be changed or cancelled

tax on gifts generally paid by the person making the gift rather than the recipient

the original value of an asset, such as stock, before its appreciation or depreciation

the growth in value of an asset like stock or real estate since the original purchase

the price a willing buyer and willing seller can agree on

The person receiving the gift annuity payments.

the part of an estate left after debts, taxes and specific bequests have been paid

a written and properly witnessed legal change to a will

the person named in a will to manage the estate, collect the property, pay any debt, and distribute property according to the will

A donor-advised fund is an account that you set up but which is managed by a nonprofit organization. You contribute to the account, which grows tax-free. You can recommend how much (and how often) you want to distribute money from that fund to the House or other charities. You cannot direct the gifts.

An endowed gift can create a new endowment or add to an existing endowment. The principal of the endowment is invested and a portion of the principal’s earnings are used each year to support our mission.

Tax on the growth in value of an asset—such as real estate or stock—since its original purchase.

Securities, real estate or any other property having a fair market value greater than its original purchase price.

Real estate can be a personal residence, vacation home, timeshare property, farm, commercial property or undeveloped land.

A charitable remainder trust (CRT) provides income to you, as the donor of the CRT, or to other named individuals, and does so each year for life or for a period not exceeding 20 years. The remainder of the assets go to your chosen charity.

You give assets to a trust that pays our organization set payments for a number of years, which you choose. The longer the length of time, the better the potential tax savings to you. When the term is up, the remaining trust assets go to you, your family or other beneficiaries you select. This is an excellent way to transfer property to family members at a minimal cost.

You fund this type of trust with cash or appreciated assets—and may qualify for a federal income tax charitable deduction when you itemize. You can also make additional gifts; each one also qualifies for a tax deduction. The trust pays you, each year, a variable amount based on a fixed percentage of the fair market value of the trust assets. When the trust terminates, the remaining principal goes to the House as a lump sum.

You fund this trust with cash or appreciated assets—and may qualify for a federal income tax charitable deduction when you itemize. Each year the trust pays you or another named individual the same dollar amount you choose at the start. When the trust terminates, the remaining principal goes to the House as a lump sum.

A beneficiary designation clearly identifies how specific assets will be distributed after your death.

A charitable gift annuity involves a simple contract between you and the House where you agree to make a gift to the House and we, in return, agree to pay you (and someone else, if you choose) a fixed amount each year for the rest of your life.

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