Unique giving opportunity that expires Dec. 31
Congress recently passed H.R. 5771, a bill that includes a one year retroactive extension of the IRA Charitable Rollover through December 31, 2014. The IRA Charitable Rollover allows individuals age 70½ and older to make direct transfers to 501(c)(3) organizations such as Cardinal Stritch University, up to $100,000, without having to count the transfers as income for federal income tax purposes.
- Who qualifies?
Individuals age 70½ or older at the time of the contribution (you must wait until your actual 70½th birthdate to make the transfer).
- How much can I transfer?
$100,000 per year.
- From what accounts can I make transfers?
Transfers must come from your IRAs directly to Cardinal Stritch University. If you have retirement assets in a 401(k), 403(b) etc., you must first roll those funds into an IRA, only then can you direct the IRA provider to transfer the funds from the IRA directly to Cardinal Stritch University.
- To what organizations can I make gifts?
501(c)(3) tax exempt organizations, including Cardinal Stritch University.
- Can I use the rollover to support a particular purpose of Cardinal Stritch University?
You can direct your IRA Charitable Rollover gift as you see fit. However, you cannot direct your gift for a purpose from which you receive a personal benefit, goods, or services in return. Consult Rob Buckla at firstname.lastname@example.org, (414) 410-4201 or Chris Lange at email@example.com, (414) 410-4207 regarding Stritch's greatest needs.
- How will Cardinal Stritch University count the gift?
You will receive full credit for the entire gift amount.
- What are the tax implications?
Federal — You do not recognize the transfer to Cardinal Stritch University as income, provided it goes directly from the IRA provider to us. However, you are not entitled to an income tax charitable deduction for your gift since you have not been taxed on these retirement dollars.
State — Each state has different laws, so you will need to consult with your own advisors, depending on legal residence.
- Does this transfer qualify as my minimum required distribution?
According to federal law, once you reach age 70½, you are required to take minimum distributions from your retirement plans annually. IRA charitable rollovers count towards your minimum required distributions for the year.
- How do I know if an IRA charitable rollover is right for me?
If you are at least age 70½ and…
You do not need the additional income necessitated by the minimum required distribution, OR
Your charitable gifts already equal 50% of your adjusted gross income, so you do not benefit from an income tax charitable deduction for additional gifts, OR
You do not itemize deductions, OR
You are subject to income tax deduction and exemption phase outs
- What are the steps to perform an IRA Charitable Rollover?
The first step is to contact your IRA provider to learn their procedures. Below are sample letters (see below) you can send to your IRA provider to start a rollover. Please be sure to make us aware of the rollover so we make sure we have received your contribution
Sample Letter of Instructions to Plan Provider for 2012 Gifts
Sample Letter of Instructions to Plan Provider for 2013 Gifts
For more information, please contact:
Chris Lange, '11
Director of Major Gifts and Planned Giving
Cardinal Stritch University
6801 N Yates Rd
Milwaukee, WI 53217