IRA Charitable Rollover

70½ or Older? You Can Make a Difference!

If you are 70½ or older, now you can make a difference by giving to LIFE Senior Services and other causes that you care most about from your annual IRA distributions. These gifts can be made tax-free and are not included in your taxable income. Additionally, by giving some of the IRA withdrawal away, you may reduce the tax on Social Security.

Giving is one of life's pleasures; watch your gifts grow to meet current and future needs.

IRA Charitable Rollover

As part of the PATH Act, legislators passed a permanent extension of Charitable IRA legislation, making it easier for Americans to give to causes they care about. The Charitable IRA provision, first enacted in 2006, has the power to help local charities strengthen their communities by allowing individuals to roll over up to $100,000 from an Individual Retirement Account (IRA) annually to charity without being federally taxed.

IRA Charitable Rollover Overview

The IRA Rollover allows people age 70½ and older to make direct transfers totaling up to $100,000 per year to qualified charities, without having to count the transfers as income for federal income tax purposes. Transfers must come from your IRA directly to the qualified charity. If you have retirement assets in a 401k, 403b etc., you must first roll those funds into an IRA, and then you can direct the IRA provider to transfer the funds from the IRA
directly to the charity.

Important Facts about the IRA Charitable Rollover

  • Charitable IRA Rollover gifts must be directed to tax exempt organizations that are classified as 501(c)(3) charities, such as LIFE Senior Services.
  • The IRA Rollover is not eligible to fund life-income gifts such as charitable gift annuities or charitable remainder trusts.
  • The transfer to the charity does not count as income for federal tax purposes and is not taxed as such, provided it goes directly from the IRA provider to the charity. However, you are not entitled to an income tax charitable deduction for your gift.
  • IRA Charitable Rollover gifts do count towards the minimum distributions
    required for people who have reached age 70½.
  • To execute an IRA Charitable Rollover, contact your plan provider to learn their procedures.