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Giving

Retirement Plans

Charitable IRA Rollover

The charitable IRA rollover, or qualified charitable distribution (QCD), is a special provision that allows donors to exclude from taxable income, and count their required minimum distribution from certain transfers of IRA assets that are made directly to public charities.

Many donors age 70 ½ or older have used this option to support the charity of their choice with tax-wise gifts ranging from $100 to $100,000.

 

How It Works

The charitable IRA rollover allows individuals 70 ½ or older to make gifts during their lifetime. It allows for a tax-free transfer of funds to Salzburg Global Seminar without the income tax associated with withdrawals from traditional IRAs and certain Roth IRAs. Thus, your gift for up to $100K a year will not be included as taxable income. 

 

Gifts That Qualify

A gift that qualifies, technically termed a “qualified charitable distribution,” is:

Made by a donor age 70 ½ or older

  • Transferred from a traditional or Roth IRA directly to a permissible public charity
  • (If giving in this manner, please tell your broker or fund manager to name you as the donor on the transfer.)
  • Completed during the applicable tax year

 

Questions:

1. What about the required minimum distribution?

A qualifying rollover gift can count toward satisfying your required minimum distribution if you had not already done so.

2. Is an income tax deduction also available?

No. The gift would be excluded from income, so providing a deduction in addition to that exclusion would create an inappropriate double tax benefit.

3. Why are Roth IRAs included? Aren't withdrawals from a Roth IRA tax-free?

Withdrawals from a Roth IRA may be tax-free only if the account has been open for longer than five years or if certain other conditions apply. Otherwise, withdrawals are taxed as if they came from a traditional IRA. Therefore, certain Roth IRAs could benefit from a charitable IRA rollover.

4. Who can benefit from using the charitable IRA rollover to make a gift?

  • Persons with significant assets in an IRA
  • Persons making gifts that are large, relative to their income (Because a charitable rollover is not included in taxable income, it does not count against the usual percentage limitations on using charitable deductions.)
  • Persons having so few deductions that they choose not to itemize

*Please note that gifts cannot be made to any charity. Excluded charities include donor advised funds, supporting organizations, and private foundations. Salzburg Global Seminar is a qualifying charity for charitable IRA rollovers. 

 

If you have additional questions about a charitable IRA rollover, please contact development@SalzburgGlobal.org or +1 (202) 637-7682.