Retirement IRA Giving

  • The Pension Protection Act of 2006 permits IRA owners starting at age 70½ to make tax-free charitable gifts totaling up to $100,000 per year from their IRAs directly to eligible charities, such as Carlow University.

  • Retirement IRA Giving is a win-win for alums over 70 years old because of the Pension Protection Act of 2006Through the end of 2013, U.S. IRA owners age 70½ and older may take advantage of the IRA charitable rollover provision. This provision allows U.S. individuals to make federally tax-free distributions of up to US$100,000 from an IRA to qualified charitable organizations, such as Carlow University. Charitable distributions from an IRA may be used to satisfy the annual required minimum distribution (RMD).

    Details of the Provision:

    • Donors must be age 70½ or older on the date of the distribution
    • A maximum of US$100,000 per year per taxpayer may be distributed to qualified charitable organizations
    • Couples with separate IRAs can each gift up to US$100,000 per year
    • Distributions must be transmitted directly from your IRA's plan administrator to the charity before the end of 2013
    • Distributions to charity may be applied to satisfy required minimum distribution (RMD)
    • Receipt from the charity is required for a donor to substantiate a charitable IRA distribution
    • Donors may not receive any personal benefit in exchange for the distribution
    • Opportunity for IRAs only, it does not apply to other forms of retirement plans such as 401(k), 403(b)
    • Because no income is reported on the donor's tax return, donors do not receive a charitable income tax deduction for the distribution

    Please note: Information found on this page is intended to provide general information and is not intended as legal advice nor should be relied upon as such.