Donations with an IRA Charitable Rollover (Qualified Charitable Distribution)

Congress has permanently extended the IRA Charitable Rollover. The IRA Charitable Rollover allows individuals ages 70½ and older to make direct transfers from their IRAs — up to $100,000 per year — to organizations such as JGSGW. This can help fund JGSGW without the donor having to count the transfer as income for federal tax purposes.

The rules for making a gift from your IRA are:
  • You must be 70½ or older at the time of the gift.
  • Your gift must be made directly from your IRA custodian to JGSGW. If you wish to contribute retirement assets in 401(k) or 403(b) accounts, you must first transfer those funds into an IRA and then make the transfer to JGSGW.
  • Your gift counts toward your required minimum distribution.
  • You will not pay federal income taxes on the withdrawal for the gift, so you cannot claim an income tax charitable deduction for the gift.

Certain states may not exclude gift amounts withdrawn from an IRA for state income tax purposes. When planning your gift, please be sure to check with your plan provider or tax advisor on whether your state of residence will tax your intended charitable distribution.

Advantages of giving through an IRA Charitable Rollover include:

  • Convenience - It is a very simple and easy way to make a gift.
  • Standard Deduction Benefit - With an IRA charitable rollover, you may take the standard deduction. Since the IRA rollover is not included in income on your return, it may reduce your taxes.
  • Lower Tax on Social Security - Because of an IRA distribution, you may be paying tax on up to 85% of your Social Security. Using the IRA charitable rollover may lower your income such that Social Security is taxable at a lower rate.
  • No Giving Limits - With an IRA charitable rollover, you may give more than the usual deductible amount of 50% of income (subject to the $100,000 maximum contribution limit).

Procedures for making the gift:

  • to obtain a copy of our IRS 501(c)(3) Determination Letter.
  • Request an IRA Charitable Rollover gift form from your IRA custodian.
  • Fill out the gift form and send it, along with the copy of our IRS 501(c)(3) Determination Letter, directly to your IRA custodian.  Please do not send them to JGSGW.
  • Notify the that the gift has been made, since we will not otherwise know the source. When your gift is received, we will send you an acknowledgement letter for your records.

The address that the custodian should use to mail the Charitable Rollover is:

Jewish Genealogy Society of Greater Washington (JGSGW)
P.O. Box 1614
Rockville, MD 20849-1614

To learn if an IRA Charitable Rollover is right for you, please discuss with your tax advisor. For general information, contact by email.

  


                           © 2016, Jewish Genealogy Society of Greater Washington, Inc.