IRA Charitable Rollover

Now you can use your traditional IRA to help provide for the defense of public education, religious freedom and individual liberties. Best of all, you will owe no federal income taxes on your distribution, as well as avoid potential future estate taxes.

 

H.R. 2029, the Protecting Americans from Tax Hikes Act of 2015, allows individuals 70½ or older to make charitable gifts directly from a traditional IRA account without incurring federal income tax on the withdrawal. The IRA Charitable Rollover provides you with an excellent opportunity to make a gift during your lifetime from an asset that would be subject to multiple levels of taxation if it remained in your taxable estate.

 

To qualify

  • You must be age 70½ or older at the time of gift.
  • Transfers must be made directly from a traditional IRA account by your IRA administrator to the TFN Education Fund. Funds that are withdrawn by you and then contributed do NOT qualify. Gifts from 401k, 403b, SEP and other plans do not qualify.
  • Gifts must be outright. Distributions to donor-advised funds or life-income arrangements such as charitable remainder trusts and charitable gift annuities are not allowed.

 

Benefits — qualified charitable distributions

  • Can total up to $100,000.
  • Are not included in your gross income for federal income tax purposes on your IRS Form 1040 (no charitable deduction is available, however).
  • Count towards your minimum required distribution for the year from your IRA.

 

How do I make a gift?

What is the procedure to execute an IRA Charitable Rollover? We offer a sample letter you can send to your plan provider to initiate a rollover. Make sure that you contact TFN when you direct the rollover so we can look for the check from your IRA administrator.

 

You should consult with your tax advisor about the benefits and restrictions associated with this type of giving. Please contact our Development Office at 512-322-0545 if you are interested in making a donation using this provision or if you would like more information.

Chuck Lindell

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