IRA Charitable Rollover
The IRA Charitable Rollover, also known as a qualified charitable donation or distribution, permits individuals to gift up to $100,000 directly from an IRA to a public charity. The donor can then deduct the full amount of the donation from gross income for tax purposes.
Legislation regarding the IRA Charitable Rollover was passed by Congress and signed into law by President Obama on Dec. 18, 2015. This law extended the IRA Charitable Rollover retroactively for 2015 and made it permanent.
To take advantage of the extension for 2017, donors need to arrange a direct transfer from their IRA to an eligible charity by Dec. 31 to count against their required minimum distribution for 2017. Direct transfers from IRAs to an eligible charity made earlier in 2017 in anticipation of the IRA charitable rollover being extended will also count. To qualify, the IRA owner must be age 70½ or older, the annual limit is $100,000, and donor-advised funds and supporting organizations are not eligible.
As the IRA charitable rollover now has no expiration date, donors will have the ability to plan their IRA required minimum distributions with the knowledge that the charitable IRA rollover is available. Learn more.
Gifts of appreciated securities are as good as cash and may help offset your capital gains taxes. Also, by selling depreciated securities and gifting the proceeds of the sale, you may be able to report the loss and get credit for the charitable deduction. For instructions on how to transfer securities, visit the FSU Foundation.
To learn more about these unique opportunities and how to properly complete your gift for tax purposes, please contact Nancy Smilowitz, Assistant Dean for Advancement in the Florida State University College of Arts and Sciences, at (850) 294-1034 or firstname.lastname@example.org. She will be happy to answer any questions you may have.
Learn more about charitable giving during the holidays.