IRA Charitable Rollover Provision

It’s back and here to stay!

What is a “Qualified Charitable Rollover?”

A charitable contribution from an IRA that meets certain requirements.

What type of IRA qualifies?

Traditional IRA.

What is the age requirement?

Must be at least 70 ½ years old.

Where may I direct my charitable distribution?

Any public charity other than supporting organizations.

How much may I distribute?

The maximum is $100,000 annually. Distributions may be made at any time during the year and in any amount as long as the total doesn’t exceed the $100,000 annual maximum.

May I direct my distribution to an endowment fund?

Yes! Some donors actually use this as a strategy to fund their endowment during their lifetime.

May I direct my distribution to other types of funds at the Jewish Community Foundation?

Yes! Funds you may want to consider include the “Community Impact Fund” and the “Emerging and Emergency Jewish Needs Fund.”

May I direct my distribution to my Donor Advised Fund?

Unfortunately at this time, Donor Advised Funds may not be the recipients of Qualified IRA Charitable Rollover Distributions.

May I make outright distributions to my favorite charities?

Yes. How does the distribution need to be remitted to the charity? Distribution must come directly from the institution holding the IRA (Trustee) in order to qualify.

When does the distribution have to be made?

Distributions can be made any time during the year, but must be made no later than 12/31 of the tax year for which you would like the contribution attributed.

Does a distribution count toward my Required Minimum Distribution (RMD)?

Yes!

Can I exclude the distribution from my gross income?

Yes! (Note that you may not also take the rollover amount as a charitable deduction).

When does the IRA Charitable Rollover Provision expire?

Never! It is now permanent.

What if I don’t qualify for a Qualified Charitable Rollover, but would like to make a charitable donation from my IRA?

Non-qualified disbursements from an IRA may be made, but have to be recognized as income and then the charitable contribution may be taken as a deduction subject to IRS rules and limitations. A non-qualified distribution may be made to a Donor Advised Fund.

What do I do if I have additional questions?

Click here to email Director of Legacy Development Carol Sack or click here to email Chief Financial Officer Jane Espinoza  or call (520) 577-0388.

The Foundation always recommends that you consult with your tax professional who can best advise you regarding your unique tax situation.