The Charitable IRA Rollover is Permanent

The Protecting Americans from Tax Hikes Act of 2015, signed into law Friday, December 18, 2015, made the charitable IRA rollover a permanent part of the IRS tax code. IRA account holders age 70 ½ and older can make tax-free gifts from IRAs up to $100,000 to The Overfalls Foundation directly from their IRA account. These gifts can also count toward your Required Minimum Distributions (RMDs) for each tax year. To learn more about the advantages of charitable donations speak with your tax advisor or investment counselor.

Which distributions are eligible?
Donors must be age 70 ½ or older at the time the gift is made.
Only traditional IRAs and Roth IRAs are eligible accounts. Charitable donations from 403(b) plans, 401(k) plans, pension plans, SEPs, and other retirement plans are not eligible for the tax-free treatment. However, owners of these other types of qualified plans may be able to roll assets into a new IRA to allow them to make gifts if such a rollover is otherwise permitted.
Distributions must be made directly from the IRA administrator payable to the public charity such as The Overfalls Foundation – gifts cannot be made to a private foundation or to a donor advised fund.
Gifts cannot be used to fund a charitable gift annuity or charitable remainder trust.
Each donor may give up to $100,000 each calendar year. For couples who have separate IRA accounts, each spouse can give up to $100,000 each year.
Distributions made under this law can be used to satisfy the donor's required minimum distribution (RMD). For IRA owners over 70 ½ who do not need additional income and do not wish to pay tax on it, the rollover allows for a charitable gift to fulfill the RMD without adding to tax liability.
Donors cannot receive any goods or services in return for charitable IRA rollover contributions in order to qualify for tax-free treatment. Ineligible benefits include auctions, raffle tickets, dinners or events, parking passes, premium athletic event seating, or any other type of quid-pro-quo transactions.
Donors do not pay Federal income tax on the withdrawal of the charitable distribution from their IRA and do not claim a charitable deduction.

HOW TO EXECUTE A CHARITABLE IRA ROLLOVER

Call your IRA administrator for specific procedures. Request an IRA charitable rollover check payable to The Overalls Foundation. We offer a sample letters, formatted in MS Word and PDF, to your IRA Administrator to initiate a rollover.

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