IRA Qualified Charitable Distribution

In December 2015, Congress passed the PATH Act, which made the IRA Charitable Rollover permanent.  The IRA Charitable Rollover, originally passed in 2006, permits donors age 70 ½ or older who hold traditional IRAs to make gift transfers from such an account to qualified nonprofit charities – without first counting it as income and paying income tax.  This is good news for those individuals who want to make a charitable gift during their lifetime from their retirement assets, but have been discouraged from doing so because of the income tax penalty.

Among the provisions of the IRA Charitable Rollover:

  • Traditional IRAs 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 If the IRA owner withdraws funds and then contributes them to charity separately, amounts withdrawn will be included in the donor’s gross income.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 your required minimum distribution.
  • IRA gifts may be used to satisfy pledges to charities.
  • IRA gifts up to $100,000 that are made by December 31 qualify.
  • IRA gifts cannot be made to charitable remainder trusts, other life income gift arrangements, to donor advised funds or supporting organizations.

The IRA Distribution and Notification form is available here to assist you with your transfer.

If you choose to make a contribution to Utah State University from your IRA required minimum distribution, you will need to inform the university that this is the case.  We will provide you with an official letter for your taxes that notifies the IRS of your gift from your IRA distribution.

If you have already made your gift from your IRA to USU, Thank You!  Make sure you have the letter from Utah State University that confirms that your gift was an IRA Charitable Rollover.  If you don’t have – or cannot find – your letter let us know and we will send a duplicate letter.

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

Should you have questions or are interested in learning more about these opportunities, please contact the Office of Planned Giving:

Benjamin C. Stahmann, JD
Sr. Director, Gift Planning
435.797.7191
ben.stahmann@usu.edu