IRA Charitable Rollover

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At the end of 2015 a package of tax changes were made permanent. One of those provisions may be of particular interest to supporters of Bryn Mawr. If you are required to take more out of your IRA each than you would like, consider this giving opportunity.

The IRA charitable rollover is a terrific way to make a tax-free gift to Bryn Mawr. You can use your gift to satisfy your required minimum distribution without increasing your income taxes. If you are 70 ½ or older you can tell your IRA administrator to transfer your gift directly from your traditional IRA or Roth IRA account to Bryn Mawr. (401(k), 403(b), SEP IRA accounts, and other retirement accounts do not qualify.)

You can make a gift of up to $100,000 to satisfy the required minimum distribution from your IRA. The gift will not be taxed as income to you. You don’t get an income tax charitable deduction for the gift, but you don’t pay taxes on your IRA withdrawal which means the IRA charitable rollover is a tax-free way to make a gift.

Consider these important requirements to make an IRA charitable rollover:

  • You must be age 70 1/2 or older when the gift is made.
  • The gift must come from a traditional IRA or Roth IRA account. (401(k), 403(b), SEP IRA accounts, and other retirement accounts do not qualify.)
  • The gift must come directly from your IRA administrator to Bryn Mawr.
  • Total IRA charitable rollover gifts in any one year cannot exceed $100,000.
  • The IRA rollover gift can count toward your Required Minimum Distribution (RMD) if you have not already taken your RMD for the year you make your gift.
  • The gift from your IRA will not be available as an income tax charitable deduction.
  • The gift from your IRA will be excluded from income.

We can provide example letters of instruction to send to your IRA administrator to make an IRA charitable rollover. If you are interested in making such a gift or if you just want more information, please contact:

Office of Gift Planning
Phone: 610-526-6597
Email: giftplanning@brynmawr.edu

 

The information on this website is not intended as legal or tax advice. For such advice, please consult an attorney or tax advisor. Figures cited in examples are for hypothetical purposes only and are subject to change. References to estate and income taxes include federal taxes only. State income/estate taxes or state law may impact your results.