IRA Charitable Rollovers
FREQUENTLY ASKED QUESTIONS (FAQ)
- Who can participate? Individuals must be 70½ or older to make a IRA Charitable Rollover;
- What accounts can I transfer money from? Transfers can be made only from Traditional IRA accounts by the IRA administrator or custodian;
- What other retirement accounts qualify for transfers? None! Monies in other retirement accounts do not qualify for this program. Not qualified are 401(k), 403(b), and SEPs to name a few;
- Can money from an unqualified account be transferred to a Traditional IRA? Often, Yes. Some of the unqualified accounts mentioned can be transferred to a Traditional IRA and then could be the source for a qualified transfer. Check with investment advisors, current custodians or administrators to be sure;
- Can an IRA transfer be used for any purpose of the charity? Gifts must be outright and not for special events, donor-advised-funds, remainder trusts or gift annuities;
- Is there a limit to the amount of a IRA Charitable Rollover? The annual maximum amount per individual is $100,000;
- Does this limit apply to each person or per household? Both spouses can make IRA Charitable transfers as long as they each have an IRA and are at least 70½ years old;
- Does a IRA Charitable Rollover help me if I do not itemize my deductions? Absolutely! Although itemizers cannot deduct the transfer amount, the transfer does not increase your taxable income. That helps hold down your income while benefiting the Church of The Covenant, and the transferred amount counts toward meeting your RMD.
As always, the Church of The Covenant suggests you contact your tax and legal professionals. These advisors are in the best position to assure you every advantage to be gained from your gift.