IRA Charity Rollover
For Oregon Wild supporters over the age of 70 ½
Passed by Congress on December 18, 2015 and later signed into law by the President, the PATH Act made permanent the IRA Charitable Rollover. This provision allows for qualified charitable distributions (QCD) from IRA accounts permitting persons over age 70 ½ to arrange direct, tax-advantaged gifts from their IRAs to qualified charitable organizations, such as Oregon Wild, up to a maximum amount of $100,000.
Prior to the enactment of this and similar laws, all withdrawals from an IRA, even if used for charitable contributions, were subject to income tax at ordinary income rates. While a charitable gift from your IRA would be deductible (subject to certain limitations), there was often a tax cost in making the gift.
To make an IRA gift, contact the custodian or trustee of your account to arrange the rollover. Please call our office, as well, so that we may ensure proper transfer and receipting of your contribution. Donors must be age 70 ½ or older and own a traditional or Roth IRA. Other retirement plans, such as pensions, 401(k) plans and others are not eligible. If donors withdraw funds and then contribute them separately, amounts withdrawn will be included in the donor’s gross income. It’s vital that the IRA custodian make the transfer directly to the charity.
Here are some additional points to keep in mind:
- Beneficiaries of inherited IRAs can make gifts if they have reached the age of 70 ½.
- IRA gifts do not count against the charitable deduction “ceilings” (50% of adjusted gross income for cash gifts, 30% for gifts of appreciated securities, with a five-year carryover for excess deductions)
- IRA gifts cannot be made for charitable gift annuities, charitable remainder trusts or to donor advised funds.
If you would like further information on making an IRA gift to Oregon Wild, please contact Jonathan Jelen at (503) 283-6343 ext. 224 or firstname.lastname@example.org.
Sample letter for you to use:
Dear IRA Custodian,
The PATH Act of 2015 permits a rollover directly from an IRA to a public charity. As the owner of account #______________ that is in custody of your company, I request that you transfer from that account the sum of $_____________ to Oregon Wild, 5825 N. Greeley Avenue, Portland, OR 97217. The Federal Tax I.D. Number for Oregon Wild is 23-7432820.