Deb's Tip for November: Rollover Win/Win: Sam Supports 4 Local Jewish Orgs

As the end of 2016 is approaching we wanted to share with you a recent gift we received. It was a win/win: not only was it a tax benefit for the donor it benefited the whole community. 
We’ll call the donor Sam Henry.  Sam turned 72 this year and had to take a required distribution from his IRA.  Currently his IRA is valued at $950,000 so he must withdraw a little over $35,000 this year. He knew the distribution would increase the income taxes he owes. 
After discussing options with his financial advisor, he was interested to learn that last year’s permanent Tax Act permits rollovers from IRAs directly to most charities without recognition of income. Sam does not need his IRA distribution this year and wanted to create a legacy within the Cincinnati Jewish community to sustain its future.
Sam, his financial advisor and the endowment team at the Federation met. Sam identified four organizations he wanted to support through his legacy gift. The Federation put together an endowment agreement whereby the IRA would roll into this fund and the Federation would ensure that his legacy wishes to the community would be fulfilled upon his death.
Armed with this information, Sam instructed his IRA provider to make a $35,000 direct rollover to the Federation directly into the Henry Family Endowment fund which he created. This fund was set up to make annual gifts to four organizations within the community. In order to ensure that the organizations will continue to receive grants for many years, the fund is put into the endowment fund at the Federation and a percentage of the total is distributed to the designated organizations as stated in his agreement each year in perpetuity.
Sam was pleased to support our Jewish community and to resolve the tax problems that would have been created by his required IRA distribution.​

Please keep in mind the following information:

You can use your IRA to make a charitable gift that is excluded from your gross income and counts towards your required minimum distribution. While not eligible for an income tax deduction, the amount of the rollover gift will not be included in your Adjusted Gross Income. Restrictions:

—You must be 70 1/2 or older at the time of the gift

—The transfer must go directly to the charity from the IRA

—The total IRA rollover gifts cannot exceed $100,000

—The gift must be outright to the charity

—The gift must be received by the charity, or postmarked, by December 31, 2016 for a 2016 gift.

Learn more about the benefits of a charitable IRA rollover here.

I would be glad to be of help. Please feel free to contact me with any questions you might have.  —Deb Steinbuch (contact info below)

Practice empowered philanthropy.


Jim Friedman
Director of Planned Giving and Endowment
513-985-1524 |


Debra Steinbuch
Director of Planned Giving and Endowment/CYJL
513-985-1593 |



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