The IRA Charitable Rollover

The IRA Charitable Rollover

The Tax Increase Prevention Act of 2014, signed into law by President Obama on December 19th, includes an extension of the IRA Charitable Rollover.

The extension keeps in place all of the previous requirements in order for the charitable transfer to qualify:

• The donor must be at least 70½ years  of age when the gift is made;

• Transfer must be made DIRECTLY from the IRA administrator to the charity;

• The gifts from the IRA cannot exceed $100,000  per person ($200,000 for a couple with separate IRAs) in a given year;

• They can  only be outright gifts (can’t fund a life-income gift such as a Charitable Gift Annuity or Charitable Remainder Trust);

• There is no charitable deduction, but the donor does not include the amount distributed in their federal taxable income;

• The distribution counts toward the donor’s Minimum Required Distribution for the current tax year;

• The law is retroactive to January 1, 2014 and applies to transfers completed through December 31, 2014;

• The Rollover provision applies only to Traditional IRAs, not to 401(k)s, 403(b)s, and other similar retirement plans – gifts must be made directly to a qualified charity and may not be made to donor advised funds, private foundations or supporting organizations (gifts may also be made from Roth IRAs, but distributions from a Roth are generally tax-free to the donor anyway, depending on the donor’s age and the length of time the Roth IRA has been in place).

Contact your IRA plan administrator to proceed with a Rollover gift.

Contact Info

Lois M. Powell
Interim Director, Office of Philanthropy and Stewardship
700 Prospect Ave.
Cleveland, OH 44115