Good news! President Obama has signed the law making the Charitable IRA Rollover permanent law!
You now have the opportunity to make a gift from your IRA anytime during the year and have the gift count towards your minimum required distribution, BUT NOT included in your income.
It is important that you do NOT withdraw funds prior to making your gift. Rather, the gift must come directly from the IRA to Siena College.
We have prepared the following FAQ (frequently asked questions) to help you take advantage of this opportunity. If you have any questions regarding the charitable IRA rollover rules, please contact Jack Sise ’75, Esq., Director of Gift Planning at firstname.lastname@example.org or via cell phone at 518-783-2315.
Frequently Asked Questions Regarding Charitable IRA Rollovers
Q. I’m turning age 70½ in a few months. Can I make this gift now?
A. No. The legislation requires you to reach age 70½ by the date you make the gift.
Q. I have several retirement accounts—some are pensions and some are IRAs. Does it matter which retirement account I use?
A. Yes. Under the legislation, gifts can be made from IRAs. Pension, profit sharing, 401(k), 403(b) and other forms of retirement funds do not fall under this tax legislation. However, if you rollover from one of these accounts into an IRA, these funds are now eligible for a charitable IRA rollover.
Q. Can my gift be used as my minimum required distribution under the law?
A. Yes, absolutely. If you have not yet taken your required minimum distribution, the charitable IRA rollover gift can satisfy all or part of that requirement. Contact your IRA custodian to complete the gift.
Q. Can I give Siena money from distributions that I have already taken and qualify for these benefits?
A. No, the distribution must come directly from your IRA Administrator to Siena College to qualify for the benefits.
Q. Do I need to give my entire IRA to be eligible for the tax benefits?
A. No. You can give any amount under this provision, as long as it is $100,000 or less this year. If your IRA is valued at more than $100,000, you can transfer a portion of it to fund a charitable gift.
Q. I have two charities I want to support. Can I give $100,000 from my IRA to each?
A. No. Under the law, you can give a maximum of $100,000. For example, you can give each organization $50,000 this year or any other combination that totals $100,000 or less. Any amount of more than $100,000 in one year must be reported as taxable income.
Q. My spouse and I would like to give more than $100,000. How can we do that?
A. If you have a spouse (as defined by the IRS) who is 70½ or older and has an IRA, he or she can also give up to $100,000 from his or her IRA.
Q. I’ve already named Siena College as the beneficiary of my IRA. What are the benefits if I make a gift now instead of after my lifetime?
A. By making a gift this year of up to $100,000 from your IRA, you can see your philanthropic dollars at work.