IRA Charitable Transfer

The IRA charitable rollover legislation allows you to transfer gifts up to $100,000 per individual using funds from your individual retirement account (IRA) without undesirable tax effects.

You may contribute funds this way if:

  • You are age 70½ or older at the time of the gift.
  • You transfer up to $100,000 directly from your IRA. This opportunity applies only to IRAs and not other types of retirement plans.
  • You transfer the funds outright to one or more qualified charities. The legislation does not permit direct transfers to charitable trusts, donor advised funds, charitable gift annuities or supporting organizations.
  • You make your gift by Dec. 31, 2013.

Q. I’ve already named SJC as the beneficiary of my IRA. What are the benefits if I make a gift now instead of after my lifetime?

A. By making a gift this year of up to $100,000 from your IRA, you can see your philanthropic dollars at work. You are jump-starting the legacy you would like to. Moreover, you can fulfill any outstanding pledge you may have already made by transferring that amount from your IRA under this legislation as long as it is $100,000 or less for the year.


Q. I’m turning age 70½ in a few months. Can I make this gift now?

A. No. The legislation requires you to reach age 70½ by the date the gift is made. 


Q. I have several retirement accounts—some are pensions and some are IRAs. Does it matter which retirement account I use?

A. Yes. Direct rollovers to a qualified charity can only be made from an IRA. If you have a pension, profit sharing, 401(k) or 403(b) plan, you must first rollover all or a portion of that plan to an IRA. You can then use the funds from the IRA to complete the direct IRA rollover to qualified charity. To determine if a rollover to an IRA is available for your plan, speak with your plan administrator.


Q. Can my gift be used as my minimum required distribution under the law?

A. Yes. If you have not yet taken your required minimum distribution, the charitable IRA rollover gift can satisfy all or part of that requirement. Contact your IRA custodian to complete the gift. 


Q. Do I need to give my entire IRA to be eligible for the tax benefits?

A. No. You can give any amount under this provision, as long as it is $100,000 or less this year. If your IRA is valued at more than $100,000, you can transfer a portion of it to fund a charitable gift.


Q. My spouse and I would like to give more than $100,000. How can we do that?

A. If you have a spouse (as defined by the IRS) who is 70½ or older and has an IRA, he or she can also give up to $100,000 from his or her IRA.

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