IRA Charitable Rollover

ira_rollover_02IRA Charitable Rollover Now Permanent!

The IRA charitable rollover has become a permanent tax law. The permanent IRA rollover allows people age 70½ or older to make direct charitable gifts (up to $100,000 for an individual or $200,000 for a married couple) from an IRA.

The amount given to charity will count toward your minimum required distribution, but does not increase your taxable income.

To make a gift, please consult with your financial advisor. You may also want to read more information about IRA’s below.

You should consider an IRA Rollover if:
  • You take the standard income tax deduction rather than itemizing deductions.
  • You do not need the income from the required minimum distribution.
  • The additional income from your RMD (required minimum distribution) would result in taxation of your social security benefits or a change in your income tax bracket.
  • You would be unable to take other deductions (such as for medical expenses) due to the increased income.
  • You have maximized your charitable deductions and/or are subject to the 3% limitation on itemized deductions.
  • You are planning to give the IRA to charity anyway.
Rules for 2016
  • You must be age 70½ or older when the transfer is made to CSEMS.
  • The gift must be from a traditional or Roth IRA. Gifts from a SEP IRA or other types of retirement accounts are not eligible.
  • Checks must be made payable directly to CSEMS by your IRA custodian. [Caution: Please do NOT have the check issued in your name.] If you choose to also have the custodian mail the check directly to CSEMS, please let us know since your custodian may send it without including your name.
  • Checks must be postmarked by December 31 of the year in which you want to receive the tax benefits.
  • The maximum amount you can give to charity from your IRA in one year is $100,000 ($200,000 for couples).
  • Your gift must be outright. [For example, it cannot be used to fund a charitable gift annuity or remainder trust.]
  • The gift cannot be made to a donor advised fund. [IRA rollover gifts must be made directly to CSEMS and other charities you support.]
Other gift information
  1. Send a letter to your IRA custodian giving them instructions for sending your gift to Central Shenandoah EMS Council, Inc. 2312 W. Beverley Street, Staunton, VA 24401 [CSEMS’s EIN number is 54-1906904]
  2. Either send a copy of that letter or a separate notification letter to CSEMS for our records.
  3. You may need to allow 2-6 weeks for processing depending on your financial institution.

In all cases where estate planning or gifting is involved, you should ensure that you consult with your financial advisor and or legal counsel.

*This information is intended only as general guidance and should not be construed as legal or tax advice. It is important to check with your tax advisors regarding your specific situation.

Note: This material was updated February 18, 2016.