How to Make a Charitable IRA Rollover Gift
The IRA Charitable Rollover provision is a permanent part of the tax law which allows individuals age 72 and older to donate up to $100,000 via their IRA's required minimum distribution (RMD) to a qualified charity tax free. The transfer is not recognized as taxable income.
Frequently Asked Questions
Individuals who are at least age 72* at the time of the contribution.
*As of January 1, 2020.
Up to $100,000 for each year.
Transfers must come from IRAs directly to charity. If you have retirement assets in a 401(k), 403(b), etc., you must first roll those assets into an IRA, and then can make the transfer from the IRA directly to charity.
No, these are not eligible.
No, these are not eligible.
- Federal—You do not recognize the transfer as income, provided it goes directly from the IRA provider to charity. You are not eligible for an income tax charitable deduction.
- State—Each state has different laws, so check with your advisor. Some states have a state income tax and will include this transfer as income. Within those states, some will allow a charitable deduction and others will not. Other states base their state income tax on the federal income or federal tax paid. Still other states have no income tax at all.
Yes. Once individuals reach age 70 1/2, they are required to take minimum distributions from their retirement plans each year, according to a federal formula. IRA rollovers to charity count toward your required minimum distribution.
Yes, especially if:
- You do not itemize deductions but make charitable gifts, OR
- You are subject to the limitation on itemized deductions, OR
- You are required to take a distribution from your IRA that you don't need, OR
- Your charitable gifts already equal 50 percent of your adjusted gross income.
This sample letter can be downloaded and sent to your IRA plan provider.
For additional questions, contact founders@hartford.edu.
Note: Donors should consult their tax advisors about their specific situations prior to making a gift.