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Charitable IRA Rollover - 2012-2013



Tricia Bunten

Chief Development Officer

315 Darland Administration Building
(218) 726-8831
(866) 726-7110 toll free
E-mail // Website

Help Others With Tax-Free Gifts From Your IRA

The American Taxpayer Relief Act of 2012 extends the charitable IRA rollover for 2012 and 2013. This allows individuals 70 and a half or older to make tax-free gifts of up to $100,000 now to qualified charitable organizations, like the University of Minnesota Foundation, using funds transferred directly from their IRAs. You can make a gift effective for 2012 anytime on or before Feb. 1, 2013. Or for 2013 by December 31, 2013.

Benefits to You

- The transfer generates neither taxable income nor a tax deduction, so you will receive the benefit even if you do not itemize your tax deductions.

- The transfer may count against your unsatisfied required minimum distribution.

- You'll make an immediate impact on UMD, allowing you to witness the benfits of your generosity.

How it Works

For example: Linda, aged 73, has $200,000 in an IRA. Linda made a pledge to give UMD $20,000 in 2013. She had the choice of giving cash or other assets to fulfill the pledge, but Linda may have another option to fund her gift. The charitable IRA rollover legislation allows Linda to use her IRA to satisfy the pledge.

Linda can transfer $20,000 from her IRA on or before Dec. 31, 2013, and she will avoid paying income tax on the $20,000. She will not, however, be able to use it as a charitable deduction, making it a pure wash. The charitable IRA rollover gives her an easy and convenient way to benefit UMD without tax complications.

Please note that this law does not include IRA transfers to charitable trusts, donor advised funds, charitable gift annuities or supporting organizations.

We Can Help

Don't let this tax-wise opportunity to give today pass you by. If you have questions, need more information or would like to make a gift, please contact a development officer or the development office.

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Last modified on 06/14/13 04:44 PM
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