ira charitable rollover
The IRA Charitable Rollover was first enacted in 2006 as part of the Pension Protection Act of 2006. In December 2010, the Tax Relief, Unemployment Insurance Reauthorization and Job Creation Act of 2010 extended the rollover through December 31, 2011.
The law permits you to make donations directly to 501(c)(3) charities from your IRA without counting the distribution as part of your adjusted gross income, and consequently, without paying taxes on it.
If you are 70 1/2 or older, you may benefit from this opportunity, if your gifts meets the following requirements:
- Distribution must be made directly from the IRA trustee payable to Americans for the Arts or another public charity.
- Distributions can only be made from traditional Individual Retirements Accounts or Roth IRAs. Charitable donations from 403(b) plans, 401(k) plans, pension plans, and other retirement plans are not eligible for the tax-free treatment.
- Supporting organizations are not eligible to receive IRA rollover contributions. (Contributions to donor-advised funds and private foundations, except in narrow circumstances, do not qualify for tax-free IRA rollover contributions.)
- Your total combined charitable IRA rollover contribution cannot exceed $100,000
- You cannot received any goods or services in return for your charitable IRA rollover contribution to qualify for tax-free treatment
- You must received an acknowledgment from Americans for the Arts or other charity for each rollover contribution.
We recommend that you seek advice from your advisor prior to making a charitable rollover gift, as personal circumstances can have a significant impact on whether charitable rollovers are advantageous.
Please be sure to contact Americans for the Arts when you direct the rollover, so we may look for the check from your plan administrator. For more information about making an IRA charitable rollover contribution to Americans for the Arts, please contact Vice President of Development Katherine Gibney at 202.712.2052.
The information provided by Americans for the Arts is not financial, tax, or legal advice. You should consult your advisors before making charitable gift decisions.