IRA Charitable Rollover
Use your traditional IRA to make charitable gifts.
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.
H.R. 2029, the Protecting Americans from Tax Hikes Act of 2015 permanently extended the IRA Charitable Rollover. Originally passed in 2006 as part of the Pension Protection Act, 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.
Individuals who are age 70½ or older at the time of the contribution.
How much can I transfer?
100,000 per year. The provision no longer has an expiration date.
Does this transfer qualify as my required minimum distribution?
Once you reach age 70½, you are required to take required minimum distributions from your retirement plans each year, according to a federal formula. IRA Charitable Rollovers count towards your minimum required distribution from the IRA for the year.
Can my spouse also make an IRA Charitable Rollover, even if we are married and file jointly?
Yes, every individual can use the IRA Charitable Rollover for up to $100,000 each year.
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 us when you direct the rollover so we can look for the check from your IRA administrator.
Questions? Contact the Advancement office at 703-237-1445.
Important: Be sure to check with your financial advisor to determine whether this provision is right for you. This information is not meant as tax or legal advice.