The IRA Charitable Rollover and other critical giving incentives are again available in 2013. The IRA Rollover was first enacted in 2006 as part of the Pension Protection Act. The provision allows individuals aged 70½ and older to donate up to $100,000 from their Individual Retirement Accounts (IRAs) to public charities without having to count the distributions as taxable income.
Since the provision was first enacted, Americans have made millions of dollars of new contributions to nonprofits--including social service programs, religious organizations, arts and cultural institutions, schools, and health care providers--that benefit people every day. If you would like to learn more about how IRA Charitable Rollovers can benefit the Land Trust, please call our associate director, Zak Boone at 541-330-0017.
IRA Charitable Rollover Background
- Taxpayers age 70½ and older are required to make annual distributions from their IRAs which are then included in the taxpayers’ adjusted gross income (AGI) and subject to taxes. The IRA Charitable Rollover permits those taxpayers to make donations directly to charitable organizations from their IRAs without counting them as part of their AGI and, consequently, without paying taxes on them.
- A donor’s total combined charitable IRA rollover contributions cannot exceed $100,000 in any one year.
- Eligible Charities. 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.
- Eligible Retirement Accounts. 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.
- No Gifts in Return. Donors cannot receive any goods or services in return for charitable IRA rollover contributions in order to qualify for tax-free treatment.
- Written Receipt. In order to benefit from the tax-free treatment, donors must obtain written substantiation of each IRA rollover contribution from each recipient charity
Please note: the Land Trust can provide information and suggestions to aid in your planning, however, we cannot provide legal or tax advice, and encourage all supporters to seek financial assistance.