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Charitable IRA Rollover

IRA Charitable Rollover extended! Limited time opportunity for some 2013 donations.
IRA Charitable Rollover extended! Limited time opportunity for some 2013 donations.

Congress has re-authorized legislation that allows you to make charitable gifts from your IRA accounts during 2013 without incurring federal income tax on the withdrawal. This IRA Charitable Rollover provides you with an excellent opportunity to make a gift during your lifetime from an asset that would be subject to multiple levels of taxation if it remained in your taxable estate.

To qualify:

  • You must be age 70½ or older at the time of gift.
  • Transfers must be made directly from a traditional IRA account by your IRA administrator to Plan International USA. Funds that are withdrawn by you and then contributed do NOT qualify. Gifts from 401k, 403b, SEP and other plans do not qualify.
  • Your IRA administrator may make the check payable to Plan International USA and mail the check to you. But the check must be postmarked by December 31, 2013 for 2013 gifts.
  • Gifts must be outright. Distributions to donor-advised funds or life-income arrangements such as charitable remainder trusts and charitable gift annuities are not allowed.
  • IRA Charitable Rollovers can total up to $100,000
  • IRA Charitable Roll Overs are not included in your gross income for federal income tax purposes on your IRS Form 1040 (no charitable deduction is available, however).

Example: Suppose Jane Doe has $500,000 in an IRA and she also wants to contribute $20,000 to Plan International USA. She can authorize the administrator of her IRA to transfer $20,000 to Plan. The $20,000 distributed to Plan International USA will not be subject to federal tax and will be counted toward her annual minimum required distribution.

For Answers on Frequently Asked Questions, click here.

View a Sample Letter of Instruction that you can send to your IRA Plan Administrator for 2013.