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Charitable IRA Rollover - 2014



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

Congress extended a popular tax-advantaged giving opportunity retroactive to January 1, 2014. The Tax Increase Prevention Act of 2014 allows individuals who are age 70 1/2 or older to make gifts of up to $100,000 in 2014 directly from their IRA account to one or more qualified charities, without paying federal income tax on the withdrawl.

Donors who have an IRA and are fulfilling an existing pledge, or wish to make a new gift to benefit the campus, college or program of their choice, may want to make a Qualified Charitable Distribution. The opportunity expires Dec. 31, 2014.

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 01/26/15 01:38 PM
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