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IRA Charitable Rollover

Great news! The IRA Charitable Rollover is now permanent!

This is wonderful news for all those aged 70 ½ and older who are required to take minimum distributions from their IRA accounts and may want to use those funds to make a charitable gift, with potential tax benefits.

To take advantage of this opportunity for 2016, here are some things you need to know about the IRA Charitable Rollover:

  • You must be 70½ or older.
     
  • You can transfer up to $100,000 from your IRA directly to a qualified charity such as ours. This opportunity applies only to IRAs and not other types of retirement plans.
     
  • You pay no income tax on the gift. The transfer generates neither taxable income nor a taxable deduction, so you benefit even if you do not itemize your tax deductions.
     
  • Your gift can satisfy all or part of your required minimum distribution for the year.
     
  • Transfers will need to be made by Dec. 31, 2016, if you want your gift to qualify this year.
     
  • Contact your IRA plan administer to initiate a “qualified charitable distribution” payable directly to Grand Valley State University, Tax ID 38-1684280, P.O. Box 1945, Grand Rapids, MI 49501-1945.

For 2016 and beyond, since this is now a permanent law, you will be better able to plan your gifts to Grand Valley State University throughout the year from both a tax and philanthropic perspective.  If you have questions regarding distributions to Grand Valley, please email Director of Endowed and Planned Giving Gina Bovee at gina.bovee@gvsu.edu or call her at (616) 331-6534.

The IRA Charitable Rollover is an opportunity for you to invest in the future of Grand Valley while being able to take advantage of the tax benefits. Consult with your personal financial or legal advisors to determine if the IRA Charitable Rollover would benefit you and your philanthropic goals.