Once you reach age 70½, you are required to take minimum distributions from your retirement plans each year, according to a federal formula. These distributions are counted as taxable, federal income. An IRA Charitable Rollover allows you to make direct IRA transfers up to $100,000 per year to 501(c)(3) charities, like Olivet, and avoid counting them as income. IRA Charitable Rollovers also count towards your minimum required distributions for the year.
Is a Charitable IRA Rollover right for you?
You must be at least age 70½ and meet one of the following criteria:
- You do not need the additional income you receive from your retirement plan’s yearly required minimum distribution.
- Your charitable gifts already equal 50 percent of your adjusted gross income, so you do not benefit from a tax deduction for additional gifts.
- You do not itemize deductions.
What a Charitable IRA Rollover means for you
- Olivet gives you full credit for the entire gift amount.
- The gift immediately qualifies your for Heritage Society membership
- The transfer to Olivet does not count as income for federal tax purposes, so long as it goes straight from the IRA provider to Olivet. For this reason, you are not entitled to a tax deduction for your gift.
- If you’re 70½, your IRA Charitable Rollovers count toward your minimum required distributions for the year.
- You can direct your IRA Charitable Rollover gift to Olivet 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, such as an event ticket, items purchased at a silent auction, etc.
For more information, please call us at 815-939-5171 or email us at development@olivet.edu. Our staff will be happy to explain the benefits to you and answer your questions.
Special Rollover Update: IRA rollovers were first initiated in 2006 and 2007. They have been renewed every two years since that time. Although the current renewal ended on December 31, 2011, we expect they will be renewed at some point in 2012. This news item will be updated as soon as we have more information to share. Please check back for the latest news or give us a call at 815-939-5171.
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