If you are planning to make a gift to The Masters School Annual Fund, you have the opportunity to enhance your tax savings by making your gift directly from your IRA.

The IRA Charitable Rollover has been made a permanent feature of the tax code. Here’s how the provision works:

  • Individuals 70 ½ years and older can make gifts up to $100,000 directly from an IRA to charities such as The Masters School without having to report the distributions as adjusted gross income on their income tax returns.
  • Distributions must be made from a traditional IRA or a Roth IRA. Distributions must be payable directly from the IRA custodian to The Masters School. Your IRA custodian will supply a special form to effect the transaction.
  • The charitable distributions count toward meeting your Required Minimum Distribution (RMD) for the current tax year – reducing the amount of your taxable IRA withdrawals.

By avoiding the inclusion of the IRA withdrawal as adjusted gross income, you can avoid higher taxes on Social Security benefits, higher Medicare premiums, higher tax brackets and surtaxes on investment income.

Please consider allocating a portion of your 2017 Required Minimum Distribution to fund your Annual Fund gift. Be sure to consult with your tax advisor before taking any action. Contact Mary Ryan ’00 at 914-479-6433 or mary.ryan@mastersny.org if you have any questions.