IRA Charitable Rollover

The IRA Charitable Rollover allows individuals age 70½ and older to make direct transfers totaling up to $100,000 per year to 501(c)(3) charities, without having to count the transfers as income for federal income tax purposes.

Who qualifies?

  • Individuals who are age 70½ or older at the time of the contribution (you have to wait until your actual 70½ birthday to make the transfer).

How much can I transfer?

  • $100,000 each year.

From what accounts can I make transfers?

  • Transfers must come from your IRAs directly to the charity. If you have retirement assets in a 401(k), 403(b) etc., you must first roll those funds into an IRA, and then you can direct the IRA provider to transfer the funds from the IRA directly to the charity.

To what charities can I make gifts?

  • Tax exempt organizations that are classified as 501(c)(3) charities, to which deductible contributions can be made.

What are the tax implications to me?

  • Federal – The transfer to the charity is not recognized as income, provided it goes directly from the IRA provider to us.
  • State – Each state has different laws, so you will need to consult with your own advisors.

Does this transfer qualify as my minimum required distribution?

  • Yes, once you reach age 70½, you are required to take minimum distributions from your retirement plans each year, according to a federal formula. IRA charitable rollovers count towards your minimum required distributions for the year.