IRA Charitable Rollover Option

In 2015, Congress made the IRA Charitable Rollover a permanent option for those who are 70½ years old and are required to take a minimum distribution annually but do not need the extra income. Now, you can take advantage of this new charitable opportunity by making a gift of up to $100,000 each year from your IRA directly to MSMT and avoid paying income tax on that gift.

To qualify for a tax-free IRA Charitable Rollover, your gift must be made before the end of the year and your IRA administrator must initiate the gift. Please note that your spouse can also make a gift of up to $100,000 from his or her IRA, as long as it is a separate account. As always, you should consult with your tax professional before making this gift.

This provision applies to:

  • IRAs and Roth IRAs (SEP or Simple IRAs, 403(b)s, 401(k)s, and pension plans are not eligible) Outright gifts (these distributions cannot be used to fund life income gifts, such as charitable gift annuities or charitable remainder trusts)
  • The gift may satisfy a donor’s IRA required minimum distribution for the year. Since the amount of the direct charitable distribution can be excluded from the donor’s gross income, there is no federal income tax deduction available for such gifts.