The IRA Charitable Rollover allows individuals who are 70-½ years old or older to direct distributions from their IRA account to qualified domestic charities each tax year, up to an annual limit of $100,000. Rollover donors can avoid taking their Required Minimum Distribution (RMD), or lessen the income they must recognize from their RMD, by directing their IRA Plan Administer to make a Rollover gift to KUA. Because Rollover gifts go directly from the Plan Administrator to the donor’s designated charity, the donor does not recognize any income from their tax-deferred IRA and cannot take a tax-deduction for the gift.

IRA FAQs

List of 12 frequently asked questions.

  •  
    I will soon turn 70½. Can I take advantage of the IRA charitable rollover now?


    No. According to the IRS, you must be at least 70½ at the time the distribution is completed, so you must wait until that milestone. Although RMDs are triggered once you turn 70 1/2, you get a bit of timing leeway for your first required withdrawal. You have until April 1 of the year that follows the calendar year you turn 70 1/2, which is 6 calendar months after your 70th birthday.

  •  
    Is the limit $100,000 per person or per couple?


    If you and your spouse have separate IRA accounts, each of you may make a transfer and exclude $100,000 from taxable income.

  • My spouse would also like to give to KUA. Can we both take advantage of the charitable rollover option in the same year?


    Yes. The amount that can be excluded from income is limited to any amount up to $100,000 per taxpayer. As a married couple you can together donate up to $200,000 provided that each of you owns at least one or more IRA's and has reached age 70 ½


  •  
    What about other retirement plans? Can I transfer money from my 401(k) or Keogh?
     
     

    The IRA charitable rollover only applies to IRAs—not to 401(k) or 403(b) plans, Keoghs, profit-sharing plans, SIMPLE IRAs, or SEPs. Please note that you may be able to roll some of your retirement assets into an IRA and then make your qualified IRA rollover contribution.
  •  
    Do the IRS regulations limit the maximum annual exclusion at $100,000 per charity or in total?
     

    You can contribute a combined total of $100,000 annually to KUA and the other charities that you want to support.

  •  
    Do I have to pay state or local taxes on my IRA ditribution?


    Check with your tax or financial advisor, or your taxing authority to be sure. Some states and municipalities differ on whether you need to include distribution in your taxable income. 


  • Do I have to pay capital gains tax on the amount that I give to KUA from my IRA?


    No.
  •  
    Can I make a transfer from my IRA to my donor-advised fund?
     

    The IRS does not allow you to make tax-free IRA distributions to donor-advised funds, supporting organizations or private foundations.
     
  • Are there advantages with regard to adjusted gross income?
     

    Since charitable deductions are limited by your adjusted gross income, an IRA charitable rollover allows you to maximize your charitable contributions while minimizing your adjusted gross income. An IRA charitable rollover allows especially generous donors to benefit from contributions beyond their adjusted gross income limits.
  •  
    Can I deduct my IRA charitable rollover as a charitable gift?
     


    No. Because it has not been subject to income tax, you cannot cannot deduct it as a charitable gift. Please remember that qualified IRA rollover gifts, which count against your required minimum distribution, are as valuable as a deductible contribution.

  • If I can’t deduct the gift, why should I take advantage of this opportunity?
     
     

    Many donors view qualified distributions from their IRA as a way to manage their income. By excluding the qualified charitable transfer from income, they save additional money. For example:
    • Using the IRA charitable rollover may save you from owing higher taxes on Social Security benefits and paying higher Medicare premiums.
    • Lowering your adjusted gross income may lessen the likelihood of being subject to the 3.8 percent tax on net investment income.
    • Making qualified charitable distributions from your IRA may reduce the amount of the “phase-out” for other deductions and credits.

  • I take the standard deduction, instead of itemizing, so I cannot deduct charitable donations. Will a qualified distribution help me?
     


    Since a qualified IRA charitable rollover counts toward your required minimum distribution and is not subject to tax, your benefit is equivalent to an income tax deduction.
 

  

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Founded in 1813, Kimball Union Academy is one of the oldest private boarding high schools in New Hampshire and the country. KUA offers the best of the traditional New England Boarding School experience to a diverse group of day and boarding students from across the country and around the world. Located in Meriden, New Hampshire in the heart of the Upper Valley, Kimball Union is minutes from Dartmouth College and has direct access to Boston and New York. Terms of Use and Privacy Policy