Tax-Free Charitable IRA Rollover
If you are age 70½ or older, you can make a tax-free distribution from your IRA.
Special Tax Incentive for IRA Gifts
In 2015, Congress re-authorized the provision that allows a donor age 70½ or older to make a distribution from their IRA to qualified charities like the Chi Omega Foundation without incurring tax on the withdrawal. This is a significant incentive through which donors can potentially reduce their taxable income each year.
What You Should Know:
- You must be 70½ or older at the time you make your gift.
- Gifts must be outright and must be made directly from a traditional or Roth IRA account by your plan provider to the Chi Omega Foundation.
- If you have retirement assets in a 401(k), 403(b) etc., you must first roll those funds into an IRA, and then can direct the IRA provider to transfer the funds from the IRA directly to the Chi Omega Foundation.
- You will not be able to receive a charitable income tax deduction for the distribution from your IRA. However, gifts from an IRA will not count toward the deduction limitation for charitable gifts. This means that if your gifts from non-IRA assets have reached their deduction limitation for the year, an additional gift can be made from your IRA with no penalty.
- Total charitable IRA distributions to the Chi Omega Foundation, plus any other charity you benefit, cannot exceed $100,000 per year.
- This gift can be used to satisfy your Required Minimum Distribution (RMD); this gift cannot fund a charitable annuity or a charitable remainder trust.
- This gift may be excluded from gross income for federal income tax purposes.
- Act by December 31 to take advantage of tax relief in 2016.
Learn more about how your IRA can support Chi Omega members.
As always, we advise you to consult with your financial advisors to determine if this is an opportunity that will work for you. For additional questions or more information, please contact Foundation Executive Vice President Sally Stephens Kimball at firstname.lastname@example.org or Senior Director of Development Christy Passmore at email@example.com.
View sample transfer request form to plan administrator.
View sample letter informing Chi Omega Foundation of forthcoming gift.