IRA Charitable Rollover

A great opportunity to have an impact on Stevens!

The recently passed American Taxpayer Relief Act of 2012 included an extension of the IRA Charitable Rollover for 2012 and 2013!  As a result, individuals age 70½ and older may distribute any amount up to $100,000 tax-free from an IRA to charities and not-for-profit entities such as Stevens through the end of 2013. This amount will count towards an individual’s required minimum distribution for the year and will not be treated as taxable income.

Two special opportunities are available for 2012:

• Congress recognized the issues with a late extension of the IRA Charitable Rollover and provided two special transition rules:
• Qualified distributions made before Feb. 1, 2013 may be counted retroactively for the 2012 tax year.
• A taxpayer who took a distribution from an IRA in December 2012 may make a contribution to a qualified charity before Feb. 1, 2013, and treat this as a direct transfer.

Of course, all other requirements relating to charitable IRA rollovers must be satisfied (see below). We urge you to consult with your personal tax and financial advisors before making this or any other charitable gift.    

You should consider an IRA rollover gift if:

• You are 70½ years of age or older.
• You do not itemize deductions but make charitable gifts.
• You are required to take withdrawals from your IRA but do not have an immediate or compelling need to do so.
• Your charitable gifts already equal 50% of your adjusted gross income.

Here's how it works:

• You must be 70½ years of age or older.
• You may distribute any amount up to $100,000 to one or more charities in 2013.
• The transfer must be directly from your IRA to qualified charities; gifts to donor advised funds, private foundations, and supporting organizations are not eligible.
• The amount rolled over from your IRA will be excluded from your gross income.
• Your IRA rollover will count toward your minimum distribution requirement.
• There is no federal income tax deduction for the IRA rollover gift.
• The IRA rollover provision is effective now through December 31, 2013.

Here’s how to make your gift:

• A sample letter to send to your Plan Administrator requesting a Charitable Distribution from your IRA can be found HERE.
• When you make an IRA Rollover gift to Stevens, please send us written instructions on the proper designation of your gift. A sample letter to send to Stevens can be found HERE.
• You can also convey your gift designation to Stevens via email, if convenient, directed to development@stevens.edu.

For further details:

Please contact Michael Governor, Director of Planned Giving, at (201) 216-8967 or michael.governor@stevens.edu.