IRA Charitable Rollover
IRA Charitable Rollover Is Now Permanent
In December 2015, Congress passed H.R. 2029: Protecting Americans from Tax Hikes (PATH) Act of 2015, which made permanent what is popularly known as the IRA charitable rollover.
Under this legislation, if you are 70 ½ and older you can use your Individual Retirement Account (IRA) to make a gift directly to your favorite charitable institutions, including Notre Dame Academy, Worcester. By making this direct distribution to the Institution, you will exclude the amount of the gift from your
gross income for federal tax purposes.
Here are the requirements and restrictions for making an IRA charitable rollover gift:
● The donor must be 70 ½ or older.
● The gift must be made directly from the IRA administrator to an eligible charitable organization.
● Gifts to all charities combined cannot exceed a total of $100,000 per taxpayer for the year.
● The gifts must be outright, and no material benefits can be received in return for the gifts. Thus, a transfer for a gift annuity, charitable remainder trust, or pooled income fund is not permitted.
● Gifts cannot be made to a donor advised fund, supporting organization, or private foundation.
● The gift can be made only from an IRA. Gifts from 401(k), 403(b), and 457 plans are not permitted.
● The gift is not included in taxable income; therefore, no charitable deduction is allowed. The donor will, however, receive an appropriate gift acknowledgment for their records.
To make a gift:
● Contact your IRA administrator to request that a charitable distribution be transferred to Notre Dame Academy, Worcester. You must specify whether the gift is to be made before the end of the calendar year.
● To ensure gifts are properly recognized and recorded, instruct your IRA administrator to indicate your name on the check and specify that the gift is an IRA charitable distribution.
● Instruct your IRA administrator to send your check, made payable to Notre Dame Academy, Worcester, to:
Notre Dame Academy, Worcester
Attn: Advancement Office
425 Salisbury Street Worcester, MA 01609
Notre Dame Academy, Worcester Tax ID: 04-2143534
Note: The IRA charitable rollover is federal law; state and local law may not provide the same benefits.
To assist donors interested in making a charitable gift from their IRA, we have provided the following sample letter templates:
Sample Request from Plan Owner/Donor to IRA Administrator
Sample Letter from Donor Informing Notre Dame Academy, Worcester of IRA Transfer
Notre Dame Academy, Worcester is an educational institution and does not provide tax, legal, or financial advice. Any document or information shared by our staff is intended to be educational. Notre Dame strongly encourages all of our benefactors to seek counsel from their own legal and financial advisers. Please know that any information or documents shared by Notre Dame cannot be used to avoid tax-related penalties.
