IRA Rollover

A unique giving opportunity through your IRA

Congress extended the IRA Charitable Rollover through December 31, 2013 as a provision of the American Taxpayer Relief Act of 2012. 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 the Advancement Office 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 contributio
  • I already took my distribution for 2012, is it too late to use it to make a charitable gift for 2012?
    Under a special provision in the American Taxpayer Relief Act of 2012, if you took a distribution from your IRA in December 2012, you can elect to treat all or part of it (up to the $100,000 threshold) as a gift to the University. You will need to transfer it to us in cash before February 1, 2013, and then make the appropriate election on your tax return once the Treasury provides instructions on how to do so.
  • It would be very helpful to me to make a charitable gift from my IRA for 2012. Does the new law allow for this?
    Yes. You can elect to treat any transfer you make in January (up to the $100,000 threshold) as occurring in either 2012 or 2013. The Treasury still has to provide us with instructions on how to make the election, but for now you simply transfer the funds as you would for any other IRA Charitable Rollover and make the election at the appropriate time. You can even transfer $200,000 in January, electing half for 2012 and the other half for 2013.

Sample Letters:
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
Box 99
Milwaukee, WI 53217
(414) 410-4207