Tax-Free IRA Charitable Rollover
Thanks to the Protecting Americans from Tax Hikes Act of 2015, the tax-free IRA rollover provision that allows individuals age 70½ and older to make qualified charitable distributions of up to $100,000 per year from their IRA accounts to charity has been extended permanently.
IRA Charitable Rollover details
- You must be 70½ or older when you make a gift and the gift must be made from a traditional or Roth IRA—no other retirement plans qualify (such as 401(k), 403(b), SIMPLE or SEP accounts).
- You choose how much you want to contribute up to $100,000 in each year. This limit is per taxpayer. Thus, a husband and wife can each give up to $100,000 from separate IRA accounts.
- Distributions must be made directly to Wingate University and must be completed by December 31.
- Distributions made under this law can be used to satisfy the donor’s required minimum distribution (RMD). However, qualified charitable distributions are not limited to the donor’s RMD.
- Donors can choose to exclude the distribution from income on their federal tax return. If so, they will not receive a charitable income tax deduction.
- The IRA charitable distribution may be used to fulfill a pledge.
- The IRA charitable distribution cannot be used to fund a charitable remainder trust or charitable gift annuity and cannot be made to a private foundation, donor advised fund or supporting organization.
- Wingate University may not provide any goods or services in return for the contribution.
- If you are planning to make a qualified charitable distribution to Wingate University from your IRA, please let us know in advance so we can ensure your gift is designated and receipted properly.
IRA Charitable Rollover instructions
- Contact your IRA administrator and request they make a qualified charitable distribution from your IRA directly to Wingate University. The distribution must be made before December 31 in order to qualify for the tax year.
- Request your IRA administrator issue the check payable to Wingate University and mail it directly to:
Attn: Office of Resource Development
Campus Box 3071
PO Box 159
Wingate, NC 28174
- Also request that they include your name with the transmittal as the donor of record in connection with the transfer.
- Call or email Ernest W. Nance, Director of Donor Records and Research, at (704) 233-8122 or email@example.com, to let us know where you would like to direct your IRA charitable rollover gift.
Talk to your financial representative
It’s important to consider your tax situation before deciding whether to make a charitable contribution from your IRA. Be sure to work closely with your financial representative to determine whether this tax provision is right for you.
This information is provided as an educational service to our donors. It is not legal or tax advice. Please consult your own professional advisors on how any charitable gift may affect your own tax situation.