The IRA Charitable Rollover is now permanent! Giving from your IRA is a tax-smart way to ensure MontanaPBS continues to enrich the lives of our family, friends and neighbors here in Montana and beyond. A gift made from your IRA will never count as income, but always make a difference. That’s icing on the cake! MontanaPBS supporters interested in making an IRA rollover gift are encouraged to consult with their financial advisors. Here are frequently asked questions that can help you evaluate the benefits of making a gift from your IRA:
What is the IRA Charitable Rollover?
The IRA Charitable Rollover allows donors to make “qualified charitable distributions” directly from a retirement plan. Gifts up to $100,000 are excluded from federal income. For couples filing a joint tax return, each spouse can exclude up to $100,000 for a maximum of $200,000 each year.
What is a “qualified charitable distribution”?
A donor makes a qualified charitable distribution if:
- He or she is at least 70½ years old at the time the distribution is made.
- The distribution is made from either a Traditional or Roth IRA.
- The distribution is made to a qualified charitable organization, like MontanaPBS.
- The distribution to MontanaPBS is made directly by the retirement plan administrator.
Will this distribution (also referred to as an IRA rollover gift) count towards my required minimum distribution (“RMD”)?
Yes. The IRA rollover gift will count towards a donor’s yearly RMD.
What type of donors may benefit from an IRA rollover gift?
- Donors who do not itemize or claim a deduction for their charitable contributions.
- Donors who itemize but are unable to fully deduct their current year contributions.
- Donors who normally use withdrawn funds to make charitable gifts that are not fully deductible.
- Donors who are bumped into a higher tax bracket and phased-out of certain deductions and credits once their annual distributions are reported as income.
Can I claim a charitable deduction for an IRA rollover gift?
No. Donors receive a financial benefit by being allowed to exclude up to $100,000 of the charitable distribution from income on the federal return. To allow a charitable deduction would result in a double benefit.
Are there any restrictions on the use of an IRA rollover gift?
Yes. Although a charitable deduction is not allowed, the entire distribution to MontanaPBS must meet the same requirements as a fully deductible charitable contribution. As such, no benefits can be received in exchange for the rollover gift. For example, the gift cannot be used to purchase tickets to special events or to fund a life-income arrangement such as a charitable gift annuity.
What is the process for making an IRA rollover gift?
The process is simple. A donor will need to contact his or her plan administrator and request a “qualified charitable distribution” be made directly to MontanaPBS. If the donor first receives the distribution and then makes a gift of the funds, the contribution will not count as a qualified charitable distribution. The donor will have to report the distribution as income. In some cases, the donor may be able to claim a charitable deduction for the amount of the gift.
What is the deadline for making an IRA rollover gift?
Gift must be received by December 31st for donors to enjoy the full benefits in the current tax year.
Make your gift to MontanaPBS today. For more information about the IRA Charitable Rollover, contact your plan administrator and Elise Peterson at MontanaPBS at 406-994-6221 and firstname.lastname@example.org.