Using Your IRA to Donate to SCLA
If you are age 70.5 or older you can donate up to $100,000 per year to SCLA without having to recognize income on the sums withdrawn on your federal income tax return. The IRA Charitable Rollover also counts toward your required minimum distribution.
The IRA Charitable Rollover provides you with an excellent opportunity to make a gift during your lifetime from an asset that would be subject to multiple levels of taxation if it remained in your taxable estate.
• You must be age 70½ or older at the time of gift.
• Transfers must be made directly from a traditional IRA account by your IRA administrator to SCLA. Funds that are withdrawn by you and then contributed do NOT qualify. Gifts from 401k, 403b, SEP and other plans do not qualify.
• Gifts must be outright. Distributions to donor-advised funds or life-income arrangements such as charitable remainder trusts and charitable gift annuities do not qualify.
Benefits — qualified charitable distributions
• Can total up to $100,000.
• Are not included in your gross income for federal income tax purposes on your IRS Form 1040 (no charitable deduction is available, however).
• Count towards your required minimum distribution for the year from your IRA.
What is the procedure to execute an IRA Charitable Rollover? Contact your IRA administrator to initiate this process. Make sure that you contact us when you direct the rollover so we can look for the check from your IRA administrator.
Important: Be sure to check with your financial advisor to determine whether this provision is right for you. This information is not meant as tax or legal advice. If you have questions about how tax reform impacts your donations to SCLA we recommend that you speak to your financial advisor or tax attorney.