An IRA Charitable Rollover provides owners of Individual Retirement Accounts (IRAs) with a unique giving opportunity to support their favorite charities without being subject to federal income tax on the distribution from a traditional IRA. This is particularly beneficial for those with a passion for charitable giving who need to take their required minimum distribution, but do not necessarily need the income this year.
How does it work?
IRA owners who are 701/2 and older can transfer up to $100,000 of IRA assets to public charities without being subject to federal income tax on the distribution. If married, each spouse can transfer up to $100,000 from his or her IRA. The charitable gift must be made directly from the custodian of the IRA to the qualifying charity.
Who can benefit from using the charitable IRA rollover to make a gift?
- Those with significant assets in an IRA
- Those who do not itemize deductions for income tax purposes
- Those who earn enough to have part of their deductions phased out
Can the IRA Charitable Rollover support any charity?
No, this gift may not be contributed to donor advised funds and most private foundations. There are also supporting organizations who may not qualify to receive such a gift.
How can the Community Foundation for Palm Beach and Martin Counties help?
We have a variety of charitable funds that qualify for the IRA charitable rollover including funds that support up to four of your favorite local and/or national charities and funds that support your charitable field of interests. We also offer a fund known as the Community Impact Fund that responds to ongoing and emerging needs in Palm Beach and Martin Counties.
Regardless how you support your favorite charities, we always recommend that you consult your tax advisor to see what’s right for you and your individual tax situation.
We’d love to help you with your charitable giving. Please reach out to the Community Foundation for Palm Beach and Martin Counties at (561) 659-6800 or visit www.yourcommunityfoundation.org to get started.
Sheila Kinman, CAP® is the Vice President for Development at the Community Foundation where she helps donors design and fulfill their charitable giving goals. She is also a Charted Advisor in Philanthropy (CAP®), a designation that provides knowledge for guiding charitable individuals, businesses and foundations.