IRA Charitable Rollover Is Back

Good News for People 70 ½ and Up

Published in: Update - Issue 1 - 2013 »     Listen to Article ♫

The popular tax-law provision known as the Charitable IRA Rollover that expired at the end of 2011 has been resurrected by Congress. Following suit, we resurrected part of an article we published in 2011 that answers the most common questions our donors ask about this type of donation.

What is a Charitable IRA Rollover?

It is a tax-law provision that allows you to make taxfree gifts of up to $100,000 from your traditional or Roth IRA to your favorite nonprofits.

Why is this particularly important if I am 70 ½ years or older?

When you become 70 ½ or older you must take a mandatory taxable distribution from your IRA. If you choose to send the distribution directly to an eligible charity, it will not be taxed.

Are there other requirements for a qualified charitable distribution?

Yes, your IRA custodian must make the distribution directly to your chosen charity.

"This really is a win-win situation for both the donor and Leader Dog," says Roberta Trzos, Leader Dog director of personal giving. "It is a great way for people to help us continue the wonderful work we do. I've even worked with several donors to use their gift as a sponsorship or naming opportunity such as naming a puppy."

As with all charitable donations, Roberta underscores the importance of speaking with your professional advisors to be sure a Charitable IRA Rollover is right for you.