IRA rollover gift guidelines
- This giving opportunity applies only to individuals age 70 1/2 and above. To qualify for this rollover opportunity you must have attained this age before directing the distribution to charity.
- This rollover opportunity applies exclusively to traditional IRAs and Roth IRAs. Other retirement plans such as 401(k)s, Keoghs etc. are not eligible. In some instances it may be possible to roll other retirement plan assets into an IRA and still take advantage of this giving opportunity. However, it is very important to note that ultimately these distributions must come from IRA accounts to qualify.
- These IRA rollovers to charity are limited to $100,000 per individual for the remainder of 2013.
- To qualify the distributions must be made directly to charity. We have included a sample letter to an IRA administrator for this purpose below. Contributions to a donor advised fund or to a supporting organization are not eligible.
- These distributions to charity will count against an individual’s minimum required distribution requirement for the year. Many individuals will find that they can lower the tax burden by funding charitable contributions through IRA accounts, and proportionally reducing or eliminating the required distributions that they take into income.
- IRA distributions to fund split interest gifts such as charitable gift annuities and charitable remainder trusts are not eligible.
- It is very important that donors do not receive any benefit or value from the charity as a result of these IRA gifts. Doing so would disqualify the gift from the special IRA rollover treatment.
- It is very important that you alert the charitable organization regarding your contribution. Since the transfers will come directly from an IRA administrator, this communication will be necessary to ensure that the charity understands the origin of the gift. Please be sure to notify all charities receiving your IRA gifts.
To notify us of an upcoming gift please (click here) and utilize the comments section of this contact form.
IRA Trustee Letter:
RE: Request for Charitable Distribution from Individual Retirement Account
Dear Sir or Madam:
Please accept this letter as my request to make a direct charitable distribution from my Individual Retirement Account # (Account Number) as provided by the extension of the IRA Charitable Rollover, included in the American Taxpayer Relief Act of 2012 and Sec. 408(d)(8) of the Internal Revenue Code of 1986, as amended.
Please issue a check in the amount of $___________ payable to the organization at address below:
Salt Lake City Mission
City, State, Zip
In your correspondence to Salt Lake City Mission, please list my name and address as the donor of record in connection with this transfer. Please copy me on your transmittal.
If you have any questions or need to contact me, I can be reached at (telephone)____________.
Thank you for your assistance in this matter.