The IRA Charitable Rollover Provision is now law! Permanently!
On December 18, 2015, President Obama signed legislation extending the IRA charitable rollover retroactively for 2015 and making it permanent going forward.
How does the IRA Charitable rollover work?
- You must be age 70.5 or older.
- Distributions of up to $100,000 may be made directly from your IRA to a qualified charitable organization.
- Charitable distributions will not be taxed nor will they count as income.
- You will not receive an additional charitable tax deduction for this distribution, but it can satisfy your annual required minimum distribution from your IRA.
What else do I need to know?
- The IRA rollover provision does NOT allow distributions into Donor Advised Funds. However, you may make a distribution into CCF’s Legacy Fund, into any permanent endowment fund at CCF, or directly to a charity such as your parish or Catholic school.
- Distributions must be sent directly from your IRA account to the charitable organization. It cannot be distributed to you first. Please speak to your IRA plan administrator to ensure that the process is followed correctly.
- To utilize the IRA charitable rollover provision in 2015, a distribution must take place to a qualified charitable organization on or before 12/31/2015. If you have already made an IRA distribution directly to a charitable organization in anticipation of this law being passed, that distribution will now qualify and will not be taxed nor count toward your income.
If you would like to speak with someone at the Catholic Community Foundation (CCF) about your eligibility, how this may apply to a family member, loved one, or your parish community, or to arrange a tax-free charitable IRA gift to The Legacy Fund or a permanent endowment at CCF, please contact us at 651.389.0300 or firstname.lastname@example.org, and your call will be directed to the appropriate staff person.
The Legacy Fund
The Legacy Fund allows the Catholic Community Foundation to nimbly respond to emerging, unmet needs in our community.