The University of Toledo

IRA Charitable Rollover: Use It While It's Still Here

Through the end of this year, donors can make lifetime gifts using Individual Retirement Account (IRA) funds without incurring tax complications. Experience the joy of giving and make an impact now!  

The American Taxpayer Relief Act of 2012 allows donors 70 ½ or older to make charitable gifts directly from an IRA without incurring federal income taxes. You also can fulfill up to $100,000 of your annual IRA distribution requirement.

Act now, as there are no guarantees Congress will extend this benefit past 2013.

Who benefits from the IRA Rollover?

• Taxpayers who don’t itemize deductions.
• Itemizing taxpayers who’ve reached the 50-percent adjusted gross income charitable giving limit.
• Taxpayers whose tax deductions decrease as their income increases.
• Taxpayers who don’t need the additional income generated by the minimum required distribution.
• Donors who want to see their gift benefit UT now.

What do you need to know?

• Give Now: Rollovers must be made before Dec. 31, 2013.
• Age Requirement: You must be 70 ½ or older when distributions are made.
• Donation Limit: Combined charitable IRA rollover contributions cannot exceed $100,000 in any one year.
• Eligible Retirement Accounts: Gifts must be from traditional IRAs or Roth IRAs.  Donations from 403(b) and 401(k) plans, pension plans, or other retirement plans are not tax-free.

How do you initiate an IRA rollover?
Contact your IRA plan administrator regarding any required forms, procedures, or deadlines in order to make sure the transfer takes place before Dec. 31, 2013. In order to accurately account for your gift, please let the UT Foundation know when to expect your gift and how you would like it directed.

For more details, contact L. Paul Hood, Jr., J.D., LL.M., director of planned giving, at paul.hood@utoledo.edu or 419.530.5303.