IRA Charitable Rollover

You can support the IPA Foundation through an Individual Retirement Account!
 

The IRA Charitable Rollover was first enacted as part of the Pension Protection Act of 2006 and permanently extended in the Protecting Americans from Tax Hikes Act of 2015. Now, you can make a charitable gift directly from your IRA every year while excluding the amount of that gift from your adjusted gross income.

Advantages to you:

  • The IRA Charitable Rollover permits you to make donations directly to charitable organizations such as the IPA Foundation from your IRA without counting the distribution as part of your adjusted gross income and, consequently, without paying taxes on it.
  • You don’t recognize the distribution as income for federal income tax purposes.
  • The distribution counts towards your minimum required distribution for the year.

Do you qualify for this opportunity?

  • To give charitably from your IRA you must be aged 70 1/2 or older. (The required beginning date for mandatory distributions increased from age 70 1/2 to 72. However, the minimum age for IRA Charitable rollovers remains at 70 1/2, meaning you can give charitably from your IRA before you are required to make distributions.)
  • Your total combined charitable IRA rollover contribution cannot exceed $100,000 in any one year. (Married couples may be able to contribute up to $200,000.)
  • Charitable contributions from an IRA must go directly to a public charity that is not a supporting organization. Contributions to donor-advised funds and private foundations, except in narrow circumstances, do not qualify for tax-free IRA rollover contributions.
  • Distributions can only be made from traditional Individual Retirement Accounts or Roth IRAs. Charitable donations from 403(b) plans, 401(k) plans, pension plans, and other retirement plans are ineligible for the tax-free treatment. Distribution must be made directly from the IRA trustee payable to the IPA Foundation.
  • You cannot receive any goods or services in return for your charitable IRA rollover contribution in order to qualify for tax-free treatment.
 

We recommend that you seek advice from your accountant prior to making a charitable rollover as personal circumstances can have a significant impact on whether charitable rollovers are advantageous. In order to benefit from a current calendar year-end IRA contribution, plan to contact your IRA administrator as soon as possible as some administrators may place a deadline on requesting transfers.

If an IRA distribution seems like a good option for you, we have included two sample letters to help you communicate your wishes to IPA Foundation and to your IRA administrator. These letters will also assist us in properly receipting you for your contribution.