An IRA charitable rollover permits individuals over age 70.5 to make tax-free charitable gifts of up to $100,000 per year directly from their individual retirement accounts to qualified charities. Amounts rolled over are not taxable as income by the IRA owner and are not eligible for a charitable contribution deduction. However, such rollovers may be counted toward minimum required distributions from the owner’s IRA.
Appropriate beneficiaries include restricted endowment funds or the Foundation’s Jewish Community Endowment. The rescue package does not allow individuals to rollover funds to a donor advised fund, supporting foundation, charitable remainder trust, a private foundation or in exchange for a gift annuity.
This could be a wonderful opportunity to make an annual gift, donate a gift to a capital campaign, create endowments or prepay multi-year commitments to charitable organizations. The Foundation encourages you to consult with your advisor to determine if this opportunity is right for you.
As part of the financial rescue package, Congress voted to retroactively extend the IRA charitable rollover provision from January 1, 2008, through December 31, 2009.