Support MHJC Through Your IRA: Tax-Free Charitable Distributions

Support MHJC Through Your IRA: Tax-Free Charitable Distributions

Maximize your philanthropic impact while minimizing your tax burden. By supporting the Manetto Hill Jewish Center (MHJC) directly through your Traditional IRA, you can contribute up to $105,000 annually without paying federal income tax on the distribution.

3 Strategic Benefits of a Qualified Charitable Distribution (QCD)

Satisfy Your RMD: Your gift counts directly toward your annual Required Minimum Distribution (RMD) obligations.
Reduce Adjusted Gross Income (AGI): Unlike a standard donation, a QCD lowers your AGI, which can protect you from higher Medicare premiums and Social Security tax brackets.
Tax-Free Growth for MHJC: The synagogue receives 100% of your intended gift, free from federal income taxes.

Financial Comparison: QCD vs. Standard IRA Withdrawal

If you make a standard $5,000 withdrawal from your IRA to donate, you could pay $1,000 or more in taxes, leaving MHJC with a lower net impact. With a direct QCD transfer, MHJC receives the full $5,000, and your tax liability is $0.

4 Requirements for Tax-Free IRA Giving

To qualify for tax-free treatment under the permanent IRA Charitable Rollover Law, your distribution must meet these strict IRS criteria:

Age Constraint: You must be exactly 70½ years or older on the date the transfer is executed.
Account Type: Only Traditional IRAs qualify directly. Inherited IRAs may qualify, but employer-sponsored plans (like a 401k or 403b) must first be rolled over into a Traditional IRA.
Caps & Limits: Individuals can donate up to $105,000 per calendar year. Married couples can donate up to $210,000 ($105,000 from each individual IRA account).
Zero Personal Benefit: To maintain tax-exempt status, donors cannot receive goods, services, or personal benefits (such as
event tickets or gala seats) in exchange for the contribution.

5 Steps to Execute an IRA Charitable Rollover to MHJC

Follow this mechanical sequence to ensure your donation is processed seamlessly without triggering a tax event:

1. Do Not Withdraw Funds: Avoid pulling the funds into your personal bank account first. Any personal withdrawal triggers immediate income tax liability. [1]
2. Contact Your Plan Administrator: Reach out to your financial institution (e.g., Fidelity, Charles Schwab, Vanguard) and request a Qualified Charitable Distribution Form.
3. Provide MHJC Legal Details: Instruct your administrator to issue a direct check using our exact legal information:
  - - Legal Entity Name: Manetto Hill Jewish Center
    - Mailing Address: 244 Manetto Hill Road, Plainview, NY 11803
    - Tax ID / EIN: 11-2208111
4. Choose Check Delivery: The administrator can mail the check directly to MHJC, or mail it to you to hand-deliver to the synagogue office.
5. Allocate Your Giving: Inform the MHJC office how to apply your gift. Common options include:
  - - Fulfilling an annual Sustaining Pledge
    - Making an End-of-Year or Giving Tuesday contribution
    - Funding a specific Directed Donation or the Kupriyan Family Fund

Disclaimer: Information on this page is for educational purposes and does not constitute legal or tax advice. Please consult a professional financial advisor regarding your unique tax situation.