What is a charitable IRA rollover?
The charitable IRA rollover, or qualified charitable distribution (QCD), is a special provision allowing certain donors to exclude from taxable income 鈥� and count toward their required minimum distribution 鈥� certain transfers of Individual Retirement Account (IRA) assets that are made directly to public charities, including the 91制片厂 Foundation, Inc.
How does this help me?
A charitable IRA rollover makes it easier to use IRA assets, during lifetime, to make charitable gifts, including annual pledges.
What will the rules be for the IRA charitable IRA rollover?
A gift that qualifies, technically termed a 鈥渜ualified charitable distribution,鈥� must be:
How to Give from an IRA
What is the timeline to complete this?
Is there a limit on the amount that can be given?
Yes, there is a limit. An individual taxpayer's total charitable IRA rollover gifts cannot exceed $100,000 per tax year. If both husband and wife have substantial IRA accounts, then up to $200,000 per year may qualify for IRA rollovers.
What about the required minimum distribution?
If you have not already taken your required minimum distribution in a given year, a qualifying rollover gift can count toward satisfying this requirement.
Is an income tax deduction also available?
No. The gift would be excluded from income, so providing a deduction in addition to that exclusion would create an inappropriate double tax benefit.
Why are Roth IRAs included? Aren't withdrawals from a Roth IRA tax-free?
Withdrawals from a Roth IRA may be tax-free only if the account has been open for longer than five years or if certain other conditions apply. Otherwise, withdrawals are taxed as if they came from a traditional IRA. Therefore, certain Roth IRAs could benefit from a charitable IRA rollover.
Can other retirement plans, such as 401(k) and 403(b) accounts, be used?
No. However, it may be possible to make a tax-free transfer from such other accounts to an IRA, from which a charitable rollover can then be made.
Can a gift be made to any charity?
No. Excluded are:
Who can benefit from using the charitable IRA rollover to make a gift?
Can a rollover gift be used to fund a charitable remainder trust or charitable gift annuity?
No. The donor can receive no benefits in return for the gift. This includes life income plan payments.
Can a rollover gift be used to maintain or improve a donor's standings?
No. While a charitable IRA rollover gift can be made to Athletics, the donor is not permitted to receive any priorities or other privileges in exchange for the gift. Otherwise, the gift will not be a qualified charitable IRA rollover.
Are there any benefits that a donor can receive?
The only permissible benefits from a charitable IRA rollover gift are those that would not reduce the tax deduction for which the donor would have otherwise qualified. At 91制片厂, a charitable IRA rollover gift is allowed to count toward naming opportunities.
What if a withdrawal does not meet the requirements of a charitable IRA rollover?
It simply will be included in taxable income as other IRA withdrawals currently are.
Is the charitable IRA rollover right for everyone?
While this is a great option, other types of gifts may provide donors with more tax benefits. As with any gift planning question, donors should consult their tax professionals for specific advice.
Can I still make a gift with an IRA beneficiary designation?
Absolutely! Whether or not you choose to make a charitable IRA rollover gift, you can still designate the 91制片厂 Foundation Inc. as a beneficiary to receive IRA assets after your lifetime. The lifetime charitable IRA rollover is simply another option for donors who would like to see their philanthropy at work now.
More questions?
As in all cases, consult your own advisors who must assume final responsibility in advising you whether or not this gift is appropriate in your own unique circumstance.