Individuals are permitted to roll over up to $100,000 from an Individual Retirement Account (IRA) directly to charity. The funds contributed are excluded from yoru gross income and satisfy your requirement for a required minimum distribution. The Community Foundation may receive this contribution.
Details:
- The donor must be 70.5 or older in the year the gift is made.
- The IRA assets can add to or create a Designated, Field of Interest, Unrestricted, or Scholarship Fund.
- The IRA assets cannot add to or create a Donor Advised Fund, Charitable Checking Checking Account, or Charitable Gift Annuity.
- You do not recieve a charitable deduction or pay income tax on the amount rolled over.
Deadlines:
- This provision expired December 31, 2011
- IRA transfers should be initiatied by December 15 to guarantee meeting the December 31 deadline.
- Your financial firm must maket the transfer.
The Bottom Line
Avoids adding a required minimum distribution to your gross income while providing a significant gift to charity. If the amount is more than $25,000, you can create a fund to benefit specific charities or a field of interest.
Contacts at The Community Foundation:
Chris Barge, Director of Philanthropic Services
303-442-0436
