Charitable IRA Rollovers

 

Charitable IRA Rollovers

 

CHARITABLE IRA ROLLOVERS – 2018

IRA Gift Rules

  • Donor must be age 70½ or older on the date of the gift.
  • Gifts must be made from IRA accounts only. Gifts from other retirement plans such as 401(k)s and 403(b)s are not eligible.
  • Funds must go directly from the IRA provider to the charity. The donor cannot take possession of the funds.
  • Total gifts may not exceed $100,000 per IRA holder per calendar year.
  • Gifts must be postmarked by December 31, 2018.
  • Gifts must go to a public charity (such as the Kansas 4-H Foundation). Gifts to donor advised funds or private foundations are not permitted.
  • The gift must be outright. Rollovers to charitable gift annuities or charitable remainder trusts don’t qualify.
  • The gift counts toward the donor’s IRA Required Minimum Distribution.
  • No charitable deductions are allowed, but the gift amounts will not be included in the donors’ incomes.

Who Wins With Charitable IRA Rollovers?

  • Donors who don’t itemize their deductions (i.e. those who take the standard deduction).
  • Donors whose Social Security benefits are subject to income taxation.
  • Donors who are subject to surtaxes on net investment income.
  • Donors who are paying higher than standard Medicare premiums.

For more information, contact us:

785.532.5881

info@kansas4hfoundation.org

We recommend you seek the advice of your tax and/or legal counsel before deciding on a course of action.