IRA Charitable Rollover
Due to recently enacted legislation, you may be able to make a gift to
charity with a distribution from your Individual Retirement Account (IRA),
and take advantage of tax savings. Under The Protecting Americans from
Tax Hikes Act of 2015, Americans over the age of 70½ can distribute
up to $100,000 in a calendar year from an IRA to Jupiter Medical Center
or other charities, tax-free. This distribution to charity can be a significant
benefit for IRA owners who are required each year to take minimum required
distributions, which are included in their gross income for income tax purposes.
If an IRA owner directs the IRA plan administrator to distribute any amount
up to $100,000 to charity, the distribution counts toward the owner's
minimum required distribution, but is not included in his or her income
for income tax purposes. Although the IRA owner is not entitled to a charitable
deduction for the distribution, the distribution benefits charity. This
option is known as the "IRA charitable rollover."
Here's How It Works:
- You must be 70½ or older at the time of distribution.
- You may distribute any amount up to $100,000 in a calendar year to charity,
as long it is completed by December 31 of the year in which you intend
to make the charitable distribution.
- Your IRA administrator must make the distribution directly to the charity,
or you may write a check payable to the charity from your IRA checkbook.
- If you make a gift to Jupiter Medical Center from your IRA, please include
written instructions on how you would like to designate your gift by making
a note on your IRA check.
Certain restrictions and requirements* must be followed when making this
type of gift. If you have questions, please call Jennifer Amarnick, Director
of Planned Giving at 561-263-3761. Before proceeding, you should also
consult with your tax advisor to discuss your particular situation including
any impact of your state's tax laws.
* For example, the following transfers will not qualify: distributions
to private foundations, to donor advised funds, for life income gifts
(e.g., charitable remainder trusts), and for any purpose that entitles
you to receive a benefit, such as preferred seating at athletic events
or tickets to a dinner.