IRA CHARITABLE ROLLOVERS

You may also be able to make a gift to charity with a distribution from your Individual Retirement Account (IRA). Americans over the age of 70½ can distribute up to $100,000 in a calendar year from an IRA to AIF, or many other charities, tax-free.

This distribution to charity can be a significant benefit for IRA owners, who are required each year to take minimum required distributions that are included in their gross income for income tax purposes.  If an IRA owner directs the IRA plan administrator to distribute any amount up to $100,000 to charity, the distribution counts toward the owner’s minimum required distribution and is not included in his or her income for income tax purposes.  This option is known as the “IRA charitable rollover.”

How It Works:

  • You must be 70½ or older at the time of distribution.
  • You may distribute any amount up to $100,000 in a calendar year to charity, as long it is completed by December 31 of the year in which you intend to make the charitable distribution.
  • The $100,000 limit is per person, not per household. This allows each spouse in a married couple to make up to a $100,000 IRA charitable rollover each year.
  • You will not need to take a charitable deduction for the amount of your IRA rollover because that amount will be excluded from your taxable income.
  • Your IRA administrator must make the distribution directly to the charity, or you may write a check payable to the charity from your IRA checkbook. For a sample letter of instruction to your IRA administrator requesting a distribution to AIF, click here.
  • If you make a gift to AIF from your IRA, please contact us to discuss how your gift may be used.

 

*AIF is a 503(c)(3) tax-exempt organization (Federal Tax ID #13-4159765), and donations are tax-deductible or excluded from taxable income to the extent allowed by law.  Certain restrictions may apply when making this type of gift.  AIF is not a legal or tax advisor.  Please consult your tax advisor to discuss your particular situation, including any impact of your state’s tax laws.

Gifts may be sent to:

American India Foundation
Attn: Nandini Ansari
216 East 45th Street, 7th Floor
New York, NY 10017 USA