Charitable Gifts Through Your IRA
The IRA Charitable Rollover allows individuals age 70½ and older to make direct transfers totaling up to $100,000 per year to 501(c)(3) charities, without having to count the transfers as income for federal income tax purposes.
- Who qualifies? Individuals who are age 70½ or older at the time of the contribution (you have to wait until your actual 70½th birthday to make the transfer).
- How much can I transfer? $100,000 each year.
- From what accounts can I make transfers? Transfers must come from your IRAs directly to Charity International. If you have retirement assets in a 401(k), 403(b) etc., you must first roll those funds into an IRA, and then you can direct the IRA provider to transfer the funds from the IRA directly to Charity International.
- To what charities can I make gifts? Tax exempt organizations that are classified as 501(c)(3) charities, including Charity International, to which deductible contributions can be made.
- Can I use the rollover to support a particular purpose at Charity International? As with all other gifts, you can direct your IRA Charitable Rollover gift to whatever cause or purpose you choose.
- How will Charity International count the gift? We will give you full credit for the entire gift amount.
- What are the tax implications to me?
- Federal – The transfer to Charity International is not recognized as income, provided it goes directly from the IRA provider to us.
- State – Each state has different laws, so you will need to consult with your own advisors.
- Does this transfer qualify as my minimum required distribution? Yes, once you reach age 70½, you are required to take minimum distributions from your retirement plans each year, according to a federal formula. IRA charitable rollovers count towards your minimum required distributions for the year.
- What is the procedure to execute an IRA charitable rollover? Time is limited, so contact your IRA plan provider to learn their procedures. We also offer a sample letter you can send to your plan provider to initiate a rollover. Just contact us when you direct the rollover so we can look for the check from your plan provider.
For more information, please contact us at (800) 733-7201 or email@example.com