Communities IRA Charitable Rollovers
Charitable Gifts Through Your IRA
The IRA Charitable Rollover was extended to the end of December 2012. This bill allows individuals age 70½ and older to make direct transfers totaling up to $100,000 per year to 501(c)(3) charities, without having to count the transfers as income for federal income tax purposes. So if your circumstances permit, please consider a gift of IRA assets to Marlboro before the end of December. It’s an easy and advantageous way to support the college.
- Who qualifies? Individuals who are age 70½ or older at the time of the distribution.
- How much can I transfer? $100,000 per year.
- From what accounts can I make transfers? Transfers must come from your IRAs directly to Marlboro College. If you have retirement assets in a 401(k), 403(b) etc., you must first roll those funds into an IRA, and then you can direct the IRA provider to transfer the funds from the IRA directly to Marlboro College.
- To what charities can I make gifts? Tax exempt organizations that are classified as 501(c)(3) charities, including Marlboro College, to which deductible contributions can be made.
- Can I use the rollover to fund life-income gifts (charitable gift annuities, charitable remainder trusts, or pooled income funds)? No, these are not eligible.
- Can I use the rollover to fund donor advised funds or supporting organizations? No, these are not eligible.
- Can I use the rollover to support a particular purpose at Marlboro? As with all other gifts, you can direct your IRA Charitable Rollover gift as you see fit.
- How will Marlboro count the gift? We will give you full credit for the entire gift amount.
- What are the tax implications to me?
- Federal – You do not recognize the transfer to Marlboro as income, provided it goes directly from the IRA provider to us. However, you are not entitled to an income tax charitable deduction for your gift.
- State – Each state has different laws, so you will need to consult with your own advisors. Some states have a state income tax and will include this transfer as income. Within those states, some will allow for a state income tax charitable deduction and others will not. Other states base their state income tax on the federal income or federal tax paid. Still other states have no income tax at all.
- Does this transfer qualify as my minimum required distribution? Once you reach age 70½, you are required to take minimum distributions from your retirement plans each year, according to a federal formula. IRA charitable rollover gifts count towards your minimum required distributions for the year.
- How do I know if an IRA charitable rollover is right for me? You are at least age 70½ and
- You do not need the additional income necessitated by the minimum required distribution, OR
- Your charitable gifts already equal 50% of your adjusted gross income, so you do not benefit from an income tax charitable deduction for additional gifts, OR
- You do not itemize deductions.
- How do I execute an IRA charitable rollover? Usually a simple form or letter of instruction is all that is needed. Your IRA provider, bank or financial advisor can provide you with the forms necessary to make such a transfer. Please do contact us when you direct the rollover so we can look for the check from your IRA provider. Issue and mail to Marlboro College at:
Marlboro College, Development Office
PO Box A, 2582 South Road, Marlboro, VT 05344
Attn: Lisa Christensen
For more information, please call Lisa Christensen, Chief Advancement Officer, at 802-258-9259 or email to firstname.lastname@example.org.