IRA Charitable Rollover Made Permanent

At the end of 2015 a package of tax changes were made permanent. One of those provisions may be of particular interest to supporters of PSU. If you are required to take more out of your IRA each than you would like, consider this giving opportunity.

The IRA charitable rollover is a terrific way to make a tax-free gift to PSU. You can use your gift to satisfy your required minimum distribution without increasing your income taxes. If you are 70 ½ or older you can tell your IRA administrator to transfer your gift directly from your traditional IRA or Roth IRA account to PSU. (401(k), 403(b), SEP IRA accounts, and other retirement accounts do not qualify.)

You can make a gift of up to $100,000 to satisfy the required minimum distribution from your IRA. The gift will not be taxed as income to you. You don’t get an income tax charitable deduction for the gift, but you don’t pay taxes on your IRA withdrawal which means the IRA charitable rollover is a tax-free way to make a gift.

Consider these important requirements to make an IRA charitable rollover:

  • You must be age 70 1/2 or older when the gift is made.
  • The gift must come from a traditional IRA or Roth IRA account. (401(k), 403(b), SEP IRA accounts, and other retirement accounts do not qualify.)
  • The gift must come directly from your IRA administrator to PSU.
  • Total IRA charitable rollover gifts in any one year cannot exceed $100,000.
  • The IRA rollover gift can count toward your Required Minimum Distribution (RMD) if you have not already taken your RMD for the year you make your gift.
  • The gift from your IRA will not be available as an income tax charitable deduction.
  • The gift from your IRA will be excluded from income.

We can provide example letters of instruction to send to your IRA administrator to make an IRA charitable rollover. If you are interested in making such a gift or if you just want more information, please contact:

Karie Trumbo
Director of Gift Planning
503-725-2298
trumbok@psuf.org

Sarah Gambill
Assistant Director of Gift Planning
503-725-2680
gambills@psuf.org