Upon reaching age 70 ½, individuals generally must take minimum required distributions from their individual retirement account (IRA). The IRA Charitable Rollover is a simple method of charitable giving that allows benefactors to direct gifts of up to $100,000 from their IRA directly to a qualified charity, like Edgewood College.
What are the benefits?
- Support a qualified charity without increasing taxable income
- Satisfy the required minimum distribution (RMD) requirements of an IRA, up to $100,000
- Gifts go to work right away
- Those 70 ½ years of age or older with an IRA
- No income threshold or cutoff
Are there limitations on gifting from IRAs?
- Gifts must go directly from the IRA to the charity (benefactors can’t take a distribution and then write a check).
- To receive tax benefits, a rollover/distribution must be made by December 31. Future distributions will be tax deductible for the year in which they occur.
- To prevent double benefit, no corresponding charitable income tax deduction is allowed.
Which charities qualify and which don’t?
- A public charity like Edgewood College does qualify
- Donor Advised Funds and Private Foundations do NOT qualify