Charitable IRA Rollover
Are you 70 ½ or older and interested in knowing about a strategic way to support Antioch College through a tax-free rollover of IRA assets? If yes, please read on…
The American Taxpayer Relief Act of 2012
On January 2, 2013, President Obama signed the American Taxpayer Relief Act of 2012 which extended the “charitable IRA rollover” provisions of the Pension Protection Act of 2006 through December 31, 2013. This was good news for Antioch College and good news for individuals 70 ½ or older who would like to use assets they hold in a traditional IRA account for charitable purposes.
How does it work?
Individuals who are 70 ½ or older may make a “qualified charitable distribution” from their traditional IRA accounts directly to Antioch College and exclude that distribution from their gross income calculation for tax year 2013. Additionally, the amount distributed to Antioch through a “qualified charitable distribution” may serve in place of some or all of the “required minimum distribution” (RMD) individuals 70 ½ or older are required by law to take each year before December 31.
Donors who may benefit from this giving technique are those…
- Who are required to take minimum required distributions but who do not need the income.
- Who want to avoid the tax implications created by accepting your “required minimum distribution” as income.
- Whose major assets reside in their IRAs and who would like to support Antioch College during their lifetimes rather than, or perhaps in addition to, through an estate gift.
A few limitations do apply
- The maximum amount that can be directly transferred to Antioch through a “qualified charitable distribution” is $100,000. Any amount up to $100,000 is permitted.
- The distribution must be made by the trustee of the IRA account directly to the College. You as the account owner should not take possession of the funds at any time during the transaction, as that will create the taxable event that the IRA charitable rollover is designed to avoid.
- The giving technique is available only from traditional IRA accounts. Distributions from other types of retirement accounts – i.e., 401(k) and 403(b) accounts – are not eligible for this favorable tax treatment.
If you would like to learn more about this tax-advantaged giving technique, please call the Office of Advancement at Antioch College at 937.767.2341 or consult your personal philanthropic or tax advisor. The College stands ready to assist and facilitate your plans to take advantage of this opportunity.