IRA Charitable Rollover

If you are 70½ years old or older, you can take advantage of a rollover to benefit Boys & Girls Aid and receive tax benefits in return. You can give up to $100,000 from your IRA directly to a qualified charity without having to pay income taxes on the money.

This law no longer has an expiration date so you are free to make annual gifts to a qualified organization this year and well into the future.

Why is this gift right for you?

  • All donations will be put to use today, allowing you to see the difference your donation is making.

  • You pay no income taxes on the gift. The transfer generates neither taxable income nor a tax deduction, so you benefit even if you do not itemize your deductions.

  • If you have not yet taken your required minimum distribution for the year, your IRA charitable rollover gift can satisfy all or part of that requirement.

Frequently Asked Questions

Q. I've already named Boys & Girls Aid as the beneficiary of my IRA. What are the benefits if I make a gift now instead of after my lifetime?
A. By making a gift this year of up to $100,000 from your IRA, you can see your philanthropic dollars at work. You can also fulfill any outstanding pledge you may have made by transferring that amount from your IRA as long as it is $100,000 or less for the year.

Q. I have several retirement accounts—some are pensions and some are IRAs. Does it matter which retirement account I use?
A. Yes. Direct rollovers to a qualified charity can be made only from an IRA. Under certain circumstances, however, you may be able to roll assets from a pension, profit sharing, 401(k) or 403(b) plan into an IRA and then make the transfer from the IRA directly to Boys & Girls Aid. To determine if a rollover to an IRA is available for your plan, speak with your plan administrator.

Q. I have two charities I want to support. Can I give to more than one charity from my IRA in one year?
A. Yes. Under the law, you can give a maximum of $100,000. For example, you can give each organization $50,000 this year or any other combination that totals $100,000 or less. Any amount of more than $100,000 in one year must be reported as taxable income.

Q. My spouse and I would like to give more than $100,000. How can we do that?
A. If you have a spouse (as defined by the IRS) who is 70½ or older and has an IRA, he or she can also give up to $100,000 from his or her IRA.

It is wise to consult with your tax professionals if you are contemplating a charitable gift under the extended law. Please feel free to contact Suzan Huntington at 503.542.2304 or shuntington@boysandgirlsaid.org with any questions you may have.

The information on this website is not intended as legal or tax advice. For such advice, please consult an attorney or tax advisor. Figures cited in examples are for hypothetical purposes only and are subject to change. References to estate and income taxes include federal taxes only. State income/estate taxes or state law may impact your results.

 

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