Planned Giving: IRA Rollover
Use Your IRA to Make a Tax-Free Transfer to Asbury University
On December 18, 2015, Congress passed legislation that extends the special IRA charitable rollover for gifts completed in 2015 and future years. This benefit was made retroactive to January 1, 2015, and was also made permanent.
If you own an IRA and are over age 70½, you may transfer up to $100,000 directly from your IRA to Asbury University without claiming any increased income or paying any additional tax. Better yet, the tax-free rollover gift will qualify for your required IRA distribution, thereby lowering your taxable income. Even if you have taken your required distribution for 2018, you may still find taking advantage of this opportunity a convenient way to make a year-end gift.
The benefits of the IRA Charitable Rollover include:
- The charitable distribution counts toward minimum required distributions.
- The transfer generates neither taxable income nor a tax deduction, so even those who do not itemize their tax returns receive the benefit.
- The transfer may be made in addition to other charitable giving you have planned.
- You may transfer any amount up to $100,000 per year directly from your IRA.
How It Works
Mary, age 80, has $450,000 in an IRA. If Mary transfers $75,000 from the IRA to Asbury University, she will avoid paying income tax on that amount. She cannot, however, claim a charitable deduction. If her spouse has an IRA and is 70 ½ years old or older, he can also give up to $100,000 this year.
Only standard IRAs and Roth IRA accounts qualify under this law; other retirement accounts such as 401(k), 403(b), SEP, KEOGH, and SIMPLE IRA plans cannot be used to make an IRA Charitable Rollover gift.
Donors of IRA rollover gifts must receive no personal benefits from this gift nor are they available for planned gifts such as charitable remainder trusts or gift annuities.
To take advantage of this for 2018, transfers need to be complete by December 31, 2018. Act Today!
How to Make a Gift
Contact your IRA custodian to transfer your desired gift amount to Asbury University and then contact our Development Office at (800) 888-1818, x2136 or firstname.lastname@example.org to inform us of your transfer.
For More Information
Please contact the Development team at email@example.com or (800) 888-1818, x2136 with any questions.
The information on this site is not intended as legal, tax or investment advice. For advice regarding all matters associated with charitable giving, please consult an attorney, tax professional and/or investment professional.