By Reporter staff

Shelley Hubal, executive director of the Jewish Federation of Greater Binghamton, wants to remind people that they may be able to give a tax-free gift from their individual retirement accounts to the Federation. “This is the time of year that people are thinking about their required withdrawals from their IRAs, which makes this the perfect time to consider a gift to the Federation,” she said.

Individuals who are aged 70½ and older may be able to make direct transfers to the Federation of up to $100,000 per year per person from an IRA account. This withdrawal may also be tax free if gifted directly to the Jewish Federation and can satisfy the required minimum distribution without increasing the amount of income taxes owed. To qualify, the gift must be made by December 31. 

Other tax-deferred retirement plans – for example, a 401(k) or 403(b) – do not qualify; however, it may be possible to rollover those into an IRA and then make a charitable rollover gift to Federation.

“Talk to your financial advisor,” Hubal said. “This is the perfect time to make a donation.”