IRA Charitable Rollover

IRA Charitable Rollover Gift Opportunity Extended for 2013

Due to recent congressional action, you have a special planning opportunity if you are age 70 ½ or older, own an IRA, and intend to make charitable gifts this year. If this describes you, you can now make distributions directly from your IRA to the Adler School without the distributions being included in taxable income or being subject to withholding. 

In addition, rollover gifts will count towards your required minimum distribution (RMD). Because of the RMD rule, some donors find they must withdraw (taxable) funds they don’t need from their IRA. For them, a tax-free way to use those funds to support Adler is particularly attractive.

Without this “charitable rollover” provision, using IRA funds for a charitable contribution requires withdrawing money from your IRA and then contributing it. The amount withdrawn will be taxable, and the deduction for the contribution may or may not offset your tax. By contrast, an IRA charitable rollover eliminates the guesswork. And for those who do not itemize their deductions, it allows you to receive the same benefit from your gift as those that do itemize.

Making a charitable rollover gift from your IRA may be especially appropriate if:

• You do not itemize deductions.
• You would not be able to deduct all of your charitable contributions because of deduction limitations.  
• An increase in taxable income may negatively impact your ability to use other deductions.

Certain limitations apply to these non-taxable charitable distributions from an IRA:

• They cannot exceed $100,000 per person per year.
• They must be made to a public charity such as the Adler School (not a private foundation), and they cannot be to a supporting organization or a donor advised fund.
• The gifts must be outright. For instance, they cannot be used to establish a gift annuity or fund a charitable remainder trust.
• No goods or services, such as tickets to an event, can be received in exchange for the contribution.
• This giving opportunity is extended only through the end of 2013.

For more information or for sample form letters to simplify the IRA Charitable Rollover gift process, please contact Anthony Chimera, Vice President for Institutional Advancement via email or by calling 312-662-4031. Please consult with your advisors to determine if this is the best gift for you.