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IRA Qualified Charitable Distribution Rule Extension

Last January, Congress passed the American Taxpayer Relief Act of 2012, which reinstated the IRA Charitable Rollover until the end of 2013.

The IRA Charitable Rollover, originally passed in 2006 and last expired on December 31, 2011, permits donors age 70 ½ or older who hold traditional or Roth IRA retirement savings accounts to make gift transfers from such an account to qualified nonprofit charities – without first counting it as income and paying income tax. The provision currently extends through December 31, 2013.

Among the provisions of the IRA Charitable Rollover:

  • Traditional are eligible.
  • Only the IRA trustee can transfer gift amounts to a qualified organization. If the IRA owner withdraws funds and then contributes them to charity separately, amounts withdrawn will be included in the donor’s gross income.
  • The amount rolled over directly to the university will not be included in the donor’s income, but no charitable deductions are permitted.
  • IRA gifts may be used to satisfy pledges to charities. • IRA gifts may not exceed $100,000 and must be made by December 31, 2013.
  • IRA gifts cannot be made to charitable remainder trusts, other life income gift arrangements, to donor advised funds or supporting organizations.

A sample letter to an IRA administrator is enclosed.

Because there are many factors that can influence your income tax situation, it is always advisable to consult your accountant or other tax professional.

Joan Scheffke
Office of Planned Giving
435.797.7191
joan.scheffke@usu.edu