On December 18, 2015, President Obama signed the Protecting Americans from Tax Hikes Act of 2015 into law. This act extends certain charitable gift provisions of the Pension Protection Act and makes the IRA charitable rollover permanent. Here are some points of consideration:
- The IRA charitable rollover is only available for gifts from an IRA and not from any other type of retirement plan (e.g., 401(k), 403(b), etc.). In some cases, a donor may transfer assets from another type of retirement account into an IRA in order to be able to make a tax-free IRA rollover to a charity.
- It is only allowed for outright gifts to a qualified public charity like the Delta Sigma Phi Foundation for which the donor receives no benefits.
- It is allowed for donors who are at least 70 ½ years of age or older.
- IRA Charitable rollovers are allowed for up to $100,000 in total during each year from the donor’s IRA or IRAs. If married and each has his/her own IRAs, each may give up to $100,000.
- A gift from a donor’s IRA to the Delta Sigma Phi Foundation would count towards the Required Minimum Distribution that you must withdraw annually from your IRA.
- A donor does not pay income tax on funds withdrawn for an IRA rollover contribution.
- Since a donor does not pay income tax for an IRA rollover gift, the donor is ineligible to receive a charitable deduction on that specific gift.
Utilizing your IRA for a donation to the Delta Sigma Phi Foundation is a wonderful use of funds. You are able to withdraw money tax-free, have it count towards your Required Minimum Distribution, and help Delta Sigma Phi build better men — all at the same time! It’s a win-win for you.
For questions about this program or to notify the Delta Sigma Phi Foundation about an IRA charitable rollover and gift use, please contact:
Nathan Wight, Chief Advancement Officer
(317) 687-3596 or firstname.lastname@example.org