logo

IRA Charitable Rollover

Donors aged 70 1/2 or older may move up to $100,000 from their IRAs directly to qualified charities will not have to pay income tax on their gift.

Here is a recap of the IRA charitable rollover rules. The donor is age 70½ or older on the day of the gift.

  • The donor transfers up to $100,000 directly from the donor’s IRA to one or more qualified charities. This opportunity applies only to IRAs and not to other types of retirement plans
  • The donor pays no income tax on the gift. The transfer generates neither taxable income nor a tax deduction, so your donors benefit even if they do not itemize their tax deductions.
  • The gift can satisfy all or part of the required minimum distribution for the year.
  • The gift may not be used to fund a gift annuity, charitable remainder trust, donor advised fund or private foundation.
  • The donor does not receive any goods or services in return for the rollover gift in order to qualify for tax-free treatment.
  • If your donor made a gift of up to $100,000 directly from an IRA in 2015, the gift will qualify under the new law.
  • The new legislation does not have an expiration date. Your donors can make gifts in 2015 and beyond.

Making an IRA Rollover gift:

Checks may be sent to: MSU University Advancement c/o Lynn Pfaff 535 Chestnut Road, Room 300 East Lansing, MI 48824-1005

Please follow the listed guidelines:

• Donors must be age 70 ½ or older and own a traditional or Roth IRA. Other retirement plans such as pensions, 401(k), 403(b) or other plans are not eligible.

• IRA Rollover gifts may be up to $100,000 and must be transferred before December 31.

• There is no eligible income tax deduction for the amount gifted.

• Only your IRA trustee or plan administrator can transfer the gift to MSU. If IRA owners personally withdraw funds and contribute them to MSU, the amount withdrawn will be included in your gross income and subject to income tax.

• Your IRA trustee/administrator should send your IRA Rollover gift directly to MSU. The check should clearly reveal it represents an IRA Rollover provision gift and the name of the IRA account owner.

 

Top