IRA Charitable Rollover

IRA Charitable Rollover Now Permanent
In 2015, Congress enacted a permanent extension of the IRA charitable rollover. As a result, this law no longer has an expiration date so you are free to make annual gifts to Saint Joseph Academy from your IRA this year and well into the future.
The recently reinstated law allows individuals 70 1/2 and older the ability to transfer up to $100,000 from their individual retirement accounts directly to Saint Joseph Academy or other qualified charitable organizations without being subject to income taxes on the distribution. 
Here are the Details:
  • You are age 70 1/2 or older at the time of the gift.
  • You transfer up to $100,000 directly from your IRA. This opportunity applies only to IRAs and no other types of retirement plans.
  • You transfer the funds outright to one ofr more qualified charities. The legislation does not permit direct transfers to charitable trusts, donor advised funds, charitable gift annuities or supporting organizations.
Here are the Benefits:
  • Avoid taxes on transfers of up to $100,000 from your IRA to Saint Joseph Academy
  • Satisfy your required minimum distribution (RMD) for the year
  • Reduce your taxable income, even if you do not itemize deductions
  • Make a gift that is not subject to the 50% deducation limits on charitable gifts
  • Help further the work and mission of Saint Joseph Academy
Here is how it Works:
  1. Contact your IRA plan administrator to make a gift from your IRA to us.
  2. Your IRA funds will be directly transferred to Saint Joseph Academy.
  3. Please note that IRA charitable rollover gifts do not qualify for a charitable deduction.
  4. Please contact us to inform us of your gift and how you would like it to be used.
Here are some frequently asked questions:
Q. What information do I need to give my IRA administrator?
A.  Most often, you will be asked for Saint Joseph Academy’s mailing address and tax identification number:
Saint Joseph Academy, 3740 Rocky River Drive, Cleveland OH 44011
Q. I've already named your organization as the beneficiary of my IRA. What are the benefits if I make a gift now instead of after my lifetime?
A. By making a gift this year of up to $100,000 from your IRA, you can see your philanthropic dollars at work. You are jump-starting the legacy you would like to leave and giving yourself the joy of watching your philanthropy take shape. Moreover, you can fulfill any outstanding pledge you may have already made by transferring that amount from your IRA under this legislation as long as it is $100,000 or less for the year.
Q. I'm turning age 70½ in a few months. Can I make this gift now?
A. No. The legislation requires you to reach age 70½ by the date you make the gift.
Q. I have several retirement accounts—some are pensions and some are IRAs. Does it matter which retirement account I use?
A. Yes. Direct rollovers to a qualified charity can only be made from an IRA. Under certain circumstances, however, you may be able to roll assets from a pension, profit sharing, 401(k) or 403(b) plan into an IRA and then make the transfer from the IRA directly to Saint Joseph Academy. To determine if a rollover to an IRA is available for your plan, speak with your plan administrator.
Q. Can my gift be used as my minimum required distribution under the law?
A. Yes, absolutely. If you have not yet taken your required minimum distribution, the charitable IRA rollover gift can satisfy all or part of that requirement. Contact your IRA custodian to complete the gift.
Q. Do I need to give my entire IRA to be eligible for the tax benefits?
A. No. You can give any amount under this provision, as long as it is $100,000 or less this year. If your IRA is valued at more than $100,000, you can transfer a portion of it to fund a charitable gift.
Q. I have two charities I want to support. Can I give $100,000 from my IRA to each?
A. No. Under the law, you can give a maximum of $100,000. For example, you can give each organization $50,000 this year or any other combination that totals $100,000 or less. Any amount of more than $100,000 in one year must be reported as taxable income.
Q. My spouse and I would like to give more than $100,000. How can we do that?
A. If you have a spouse (as defined by the IRS) who is 70½ or older and has an IRA, he or she can also give up to $100,000 from his or her IRA.
It is wise to consult with your tax professionals if you are contemplating a charitable gift under the extended law. For additional information, please contact Connie Sipple at 216.671.0166 or