The IRA Charitable Rollover provision now allows individuals who have reached age 70½ to donate up to $100,000 to charitable organizations directly from their Individual Retirement Account (IRA), without treating the qualifying charitable distribution as taxable income.
This is a great opportunity for individuals in their 70s to plan their charitable giving every year. A qualifying IRA rollover gift can count toward taking the annual required minimum distribution. This direct rollover provision first appeared in the Pension Protection Act in 2006 as a temporary measure. On December 18, 2015, Congress passed the PATH Act (Protecting Americans from Tax Hikes) making the provision permanent.
The requirements are relatively simple. The charitable distribution must be:
- From a traditional or Roth IRA;
- Direct from the IRA trustee to the charitable organization—with no intervening possession or ownership by the IRA owner;
- On or after the IRA owner has reached age 70 ½; and
- The contribution is to an organization that qualifies as a charitable organization
The IRA Charitable Rollover is one way people can support Holy Wisdom during their lifetime. Rollover gifts both sustain and enhance what we are able to accomplish at the monastery.
Contact your IRA plan administrator to make a gift. Your IRA funds will be directly transferred to the Benedictine Life Foundation to support Holy Wisdom Monastery. Those who are interested in making this type of gift should also contact me at 608-836-1631, x124. As with any gift planning considerations, donors should consult their tax professionals for specific advice.