Are you considering converting your traditional IRA to a Roth IRA? Did you know that you may be able to lessen the tax impact through charitable giving? This could be the ideal time to take advantage of the opportunity.
The Lutheran Community Foundation (LCF) can assist you in identifying charitable giving options that complement your financial goals, including a Roth IRA conversion. A common issue with converting to a Roth IRA is how to pay for the income tax generated from the conversion. Consider giving cash, stock, mutual funds or real estate to the LCF and receive a charitable deduction that may be used to offset some of the taxable income generated from a Roth IRA conversion. Contact us for more information.
By making a charitable gift along with your Roth IRA conversion, you can offset the tax liabilities associated with the Roth IRA conversion. Plus, you can:
Fulfill your charitable giving goals, involving family in your giving plan if you wish.- Create lifetime income along with an income tax deduction.
- Liquidate real estate, securities or a business to bypass gain, create a tax deduction and generate lifetime income.
- Maximize estate planning with traditional and Roth IRAs.
- Only in 2010, you have the opportunity to convert with a special IRA provision that grants you the option to claim 50% of the conversion amount as income in 2011 and the remaining 50% in 2012.
Roth IRA conversions involve important timing and tax considerations. Please consult with your tax or legal professional prior to making a gift. Gifts to charity are irrevocable. Read donor stories about charitable Roth IRA conversions.
You have the flexibility to give to Lutheran and non-Lutheran charities, and the freedom to make changes in the future. You can provide immediate and long-term charitable support, and remain anonymous if you wish.
For more information, contact the LCF at 1-800-365-4172 or by email. You may also wish to explore your giving options using the Giving Options Tool.