The IRA charitable rollover was renewed and this time Congress has made it permanent.
Many Cincinnati Public Radio (WGUC, WVXU and WMUB) listeners have taken advantage of the IRA charitable rollover as an opportunity to support charitable organizations that are important to them. IRA distributions transferred directly to qualitied charities are not treated as taxable distributions. Despite its popularity since being introduced in 2006, the IRA charitable rollover expired several times. Now it has been reinstituted and made permanent.
Benefits, requirements and restrictions for making an IRA charitable rollover gift:
- The donor is 70 1/2 or older.
- The gift is made directly from the IRA to an eligible charitable organization.
- Gifts to all charities combined may total up to $100,000 per taxpayer for the year.
- The gifts are outright contributions and no material benefits are received in return for the gifts. A transfer for a gift annuity, charitable remainder trust or pooled income fund is not permitted.
- Gifts cannot be directed to a donor-advised fund, supporting organization or private foundation.
- Gifts are not included in taxable income and no charitable deduction is realized.
- Gifts can only be made from an IRA. 401(k), 403(b) and 457 plans are not covered by this law.
This may be the right gift for you to make if:
- You want to make a charitable gift and your IRA constitutes a large share of available assets.
- You are required to take a minimum distribution from your IRA, but you do not need additional income.
- You do not itemize your deductions. In that case, a personal IRA distribution increases your taxable income without the benefit of an offsetting deduction. An IRA charitable rollover gift will not be included in your taxable income even if you do not itemize other deductions.
- You live in a state where retirement-plan distributions are taxable on your state income-tax return, but your state does not allow itemized charitable deductions.
- You would like to make an additional charitable gift, but it would not be deductible because of the annual limitation of 50 percent of adjusted gross income for charitable contributions. The IRA charitable rollover is equivalent to a deduction because it is not included in taxable income.
- You have an outstanding pledge to a charity. The IRA charitable rollover can satisfy a pledge without violating rules against self-dealing.
Steps to take to make a gift:
If you want to make a qualifying transfer, contact your IRA administrator and instruct that person to transfer funds directly to the charity(ies) you designate.
Information you may need:
Legal Name: Cincinnati Public Radio, Inc. (dba WGUC; WVXU; WMUB)
Tax I.D. Number: # 31-1410636
Incorporated In: Cincinnati, Ohio
Mailing Address: 1223 Central Parkway, Cincinnati, Ohio 45214
Please contact Conrad Thiede, 513.419.7116 or firstname.lastname@example.org.
This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax, investment or accounting advice. Please consult your own tax, investment and accounting advisors before engaging in any transaction.