With an IRA Charitable rollover gift, you can help the work of United Way of Rock River Valley this year and enjoy valuable tax and income benefits. If you are over the age of 70½ or know someone who is, the Federal government now permits you to rollover amounts from your IRA to a charitable organization, such as United Way, without claiming any increased income or paying an additional tax. These tax-free rollover gifts could be any gift amount up to $100,000 in one year, but this option will no longer be available after the end of 2013.

To qualify, the following requirements must be met:

  • an individual must be 70½ or older;
  • the gift must be a direct transfer from the IRA to the charitable organization;
  • gifts are limited to $100,000 per individual, per year;
  • must be completed in 2013 for the 2013 tax year;
  • they cannot be made to fund charitable gift annuities, charitable remainder trusts or donor advised funds.

Although IRA Charitable Rollover gifts are not tax deductible, they provide opportunities to withdraw funds from an IRA that meet required minimum distribution requirements without subjecting these amounts to taxation. They are not subject to the 50% limitations on your charitable deductions nor reductions in itemized deductions imposed on some tax payers by tax legislation.

As with all gifts of this nature, you should discuss with your own professional advisor how the Charitable IRA Rollover might benefit your situation. We are grateful for your continued support and the impact you are making on your community through United Way.

>> Charitable IRA Rollover Frequently Asked Questions