< BACK TO OTHER WAYS TO GIVE

IRA Charitable Rollover Gifts
for Tax Smart Giving

Use Your Traditional IRA to Make Your Charitable Gifts

The IRA Charitable Rollover provides you with an excellent opportunity to make a gift during your lifetime from an asset that would be subject to multiple levels of taxation if it remained in your taxable estate.

To qualify

  • You must be age 70½ or older at the time of gift.
  • Transfers must be made directly from a traditional IRA account by your IRA administrator to McLeod Regional Medical Center. Funds that are withdrawn by you and then contributed DO NOT qualify. Gifts from 401k, 403b, SEP and other plans DO NOT qualify.
  • Gifts must be outright. Distributions to donor-advised funds or life-income arrangements such as charitable remainder trusts and charitable gift annuities DO NOT qualify.

Benefits — qualified charitable distributions (QCD)

  • Can total up to $100,000.
  • Are not included in your gross income for federal income tax purposes on your IRS Form 1040 (no charitable deduction is available, however).
  • Count towards your required minimum distribution for the year from your IRA.

From what accounts can I make transfers? Transfers must come from your IRAs directly to McLeod Regional Medical Center. If you have retirement assets in a 401k, 403b etc., you must first roll those funds into an IRA, and then you can direct the IRA administrator to transfer the funds from the IRA directly to the Foundation.

To what charities can I make gifts? Tax exempt organizations that are classified as 501(c) (3) charities, including McLeod Regional Medical Center, to which deductible contributions can be made.

Can I use the IRA Charitable Rollover to fund life-income gifts (charitable gift annuities, charitable remainder trusts, or pooled income funds), donor advised funds or supporting organizations? No, these are not eligible.

How will McLeod Health Foundation count the gift? We will give you full credit for the entire gift amount.

What are the tax implications to me?

  • Federal — You do not recognize the transfer to the Foundation as income, provided it goes directly from the IRA administrator to us; therefore, you are not entitled to an income tax charitable deduction for your gift.
  • State — Each state has different laws, so you will need to consult with your own advisors. Some states have a state income tax and will include this transfer as income. Within those states, some will allow for a state income tax charitable deduction and others will not. Other states base their state income tax on the federal income or federal tax paid. Still other states have no income tax at all.
  • Please review this Donor Scenario which illustrates how tax savings can be achieved by using the IRA Rollover option for your charitable gifts.

 

Does this transfer qualify as my required minimum distribution (RMD)? Once you reach age 70½, you are required to take required minimum distributions from your retirement plans each year, according to a federal formula. IRA Charitable Rollovers count towards your minimum required distribution from the IRA for the year.

Can my spouse also make an IRA Charitable Rollover, even if we are married and file jointly? Yes, every individual can use the IRA Charitable Rollover for up to $100,000 each year.

How do I know if an IRA Charitable Rollover is right for me? You are at least age 70½, and:

  • You do not need the additional income necessitated by your minimum required distribution (RMD), OR
  • Your charitable gifts already equal 50% of your adjusted gross income, so you do not benefit from an income tax charitable deduction for additional gifts, OR
  • You do not itemize deductions, OR
  • You are subject to income phase-outs on your income tax deductions.

 

What is the procedure to execute an IRA Charitable Rollover? We offer A SAMPLE LETTER you can send to your plan provider to initiate a rollover. Make sure that you CONTACT US when you direct the rollover so we can look for the check from your IRA administrator.

For more information, please EMAIL Elizabeth Jones.

Important: Be sure to check with your financial advisor to determine whether this provision is right for you. This information is not meant as tax or legal advice.

  • A Charitable Distribution From Your IRA

    To make it straightforward and easy for you to begin writing your will, the McLeod Foundation has partnered with FreeWill to make the process easier. Get started now!

    These services are free to you whether you include a gift to the McLeod Health Foundation or not. Free Will is not affiliated with McLeod Health or the Foundation, and McLeod Health makes no endorsements of its services. If you have questions about your will, you should seek the advice of legal counsel.

  • From Pennies to Portfolios

    Supporting Worthy Causes with Your IRA

    When Jeannette Glenn met with her financial advisor, she was given a choice. It was time for her to start receiving distributions from her IRA. She could either receive these distributions as income – and pay a hefty tax – or avoid taxes and help others by giving the distributions to charity.

    READ MORE

    For Jeannette, the choice was easy. Jeannette has been giving her entire life. She started as a child, enthusiastically dropping pennies into the offering plate at church. When she grew up, she became a nurse, giving love and care to patients at McLeod.

    Jeannette contributes to patient care financially as well – she has given to the McLeod Foundation for 26 consecutive years.

    “The Bible says, to whom much is given, much will be required,” Jeannette said. “God has been good to me. So, the little bit I have to give, I will give.”

    When she was a nurse at the old McLeod Infirmary, Jeannette saw family members sleep under their loved ones’ hospital beds, just to stay close to them. This sparked her passion for giving to The Guest House at McLeod, which provides patient families with a comfortable place to stay right on the McLeod Regional Medical Center campus.

    Caring for her daughter and husband, who both fought cancer, motivated Jeannette to support the McLeod Center for Cancer Treatment and Research.

    And now, Jeannette uses her IRA to fund several different McLeod Foundation initiatives.

    “Contributing with my IRA allows me to make an impact at McLeod and stay within my budget,” explained Jeannette.

    “I’ve come a long way from putting pennies in the offering plate,” she added with a smile.

    Close

  • Wise Use of Retirement Savings Benefits Cancer Patients

    The Hutchinson family has turned sorrow into hope through generous support and dedicated volunteer efforts to improve the journey for cancer patients at McLeod Health.

    The concept for the HOPE (Helping Oncology Patients Everyday) Fund was born as Robin Aiken was made aware of the complexity involved with providing immediate funding to help patients undergoing cancer treatment. Robin and her family were very moved by a patient services program at the North Carolina hospital that had cared for her sister Wana Kaye.

    READ MORE

    Taking this as her inspiration, Robin has dedicated her efforts through the McLeod Health Foundation to establish the HOPE Fund, providing immediate funding for patient support needs.

    Robin and the HOPE Fund Advisory Committee, working with the staff from the McLeod Center for Cancer Treatment and Research, had a vision for a broad-based program.

    “The only thing holding us back was funding,” shares Robin.

    To jump start the HOPE Fund, Robin’s mother chose to gift a portion of her IRA to the McLeod Health Foundation in memory of Wana Kaye in order to help cancer patients in her community.

    According to Robin, “There is a strong sense that when you are doing something so right, good things fall into place.”

    This was evidenced as Congress permanently approved provisions to allow charitable gifts from retirement accounts, commonly known as an IRA Rollover.

    Robin’s mother made two sizeable gifts that have allowed the HOPE Fund to get up and running with services to patients very quickly.

    …………………………………

    IRA Rollover gifts have been permanently extended so that you can now reliably plan for this tax-wise gift option. Donors who are 70 ½ years old and older may gift up to $100,000 in a single tax year which may fulfill all or part of their required minimum distribution. If you would like additional information about IRA Rollover gifts, visit our website at www.mcleodhealthlegacy.org or contact Elizabeth Jones in the McLeod Health Foundation Office at (843) 777-2694.

    ………………………………….

    The HOPE (Helping Oncology Patients Everyday) Fund provides donors with the opportunity to make gifts that directly impact services for patients undergoing cancer treatment. Donors have helped with transportation, medications, nutrition, educational resources and an “immediate needs fund” available to staff to help patients with barriers to their care and well-being.

    Close

McLEOD HEALTH FOUNDATION

DONATE