Jewish Family Services, in conjunction with the Tampa Orlando Pinellas Jewish Foundation (TOP) and the Harold Grinspoon Foundation, joined together to create the Life & Legacy Program. The goal of the Life & Legacy Program is to encourage legacy giving to Jewish Family Services so that it can generate adequate funding to continue the programs and services that it offers to the community into the future. The following is the 7th article in a continuing series.

Having more retirement money than you need is a great problem to have, and one that’s now easier to solve.LIFE-LEGACY-LOGO

In 2015, the US Congress passed the PATH Act, which renewed and made permanent the Charitable IRA provision of 2006, making it easier for Americans to support charities like JFS Orlando.  This provision has the power to help supporters roll over up to $100,000 annually from an Individual Retirement Account (IRA) to charities without being federally taxed.

Millions of Americans continue to save pre-tax dollars in their IRAs. The law allows taxpayers 70½ and older to share their wealth by giving retirement savings directly to charities—and bypassing income tax.

This law is important to charitable organizations like JFS Orlando as operating agents of philanthropy in order to continue to build community and improve social service programs that benefit people every day.

Thanks to decades of deliberate saving, some of today’s retirees have more money in their IRAs than they need for daily living expenses and long-term care. Charitable individuals and couples have expressed an interest in giving the funds to charities, but income tax must be paid on all withdrawals, which reduces the value of the gift. Others are concerned about designating their children as IRA beneficiaries, since that may draw unintended tax consequences.

For larger estates, a good portion of IRA wealth goes to estate taxes and income taxes of beneficiaries.  Experts estimate heirs may receive less than 50% of IRA assets that pass through estates. A provision in the federal law extends this special option: transferring IRA assets directly to charity. By going directly to a qualified public charity such as JFS Orlando, the money is not included in the IRA owner’s income and—most important—is not taxed, preserving the full amount for charitable purposes.

Annually, holders of traditional IRAs who are at least 70½ years old can make direct charitable transfers up to $100,000. Individuals may exclude the amount distributed directly to an eligible charity from their gross income. JFS Orlando can help donors execute the transfers of their IRAs.  

This really is a powerful opportunity for individuals to establish a permanent legacy at JFS Orlando and a chance of a lifetime to make the gift of a lifetime.

For more information, please contact JFS Orlando Executive Director, Eric Geboff, at 407-644-7593 or eric.geboff@jfsorlando.org.