IRA Charitable Rollover

On December 18, 2015, President Obama signed legislation into law which permanently allows you to make tax-free charitable gifts from your IRA, retroactive to January 1, 2015.

You don’t report this as income so there is no tax. And, your gift goes towards all or part of your minimum distribution requirement. You benefit even if you do not itemize your tax deductions.

Your donation can help transform the lives of students through community, faith and scholarship. You can support specific purposes, such as a department or program, or help build our endowment.

IRA Rollover Facts

  • You can qualify if you are 70 1/2 or older.
  • Your gift must come directly to us from your IRA account – either Roth or traditional.
  • You can transfer up to $100,000 per year.
  • Organizations like Kapaun Mt. Carmel Catholic High School that are classified as 501(c)(3) organizations (tax exempt) are qualified to receive IRA rollovers.
  • You pay no income tax on the gift. The transfer generates neither taxable income nor a tax deduction, so you benefit even if you do not itemize your tax deductions. It is important that the funds transfer directly from your IRA custodian to Kapaun Mt. Carmel Catholic High School in order to avoid a taxable event.
  • The gift may not be used to fund a gift annuity, charitable remainder trust, donor advised fund or private foundation.
  • You may not receive any goods or services in return for the rollover gift in order to qualify for tax-free treatment.
  • The new legislation does not have an expiration date. You can make gifts in 2015 and beyond.

To make your IRA gift, simply contact your IRA provider. You may need to provide them with our Tax ID number which is 48-0778722.

 

 

Qualified Charitable Distribution from an IRA: FAQ

What are the deadlines to complete a gift?

Distributions by wire transfer must be received in Kapaun Mt. Carmel’s account by December 31. Distributions by check must have a postmark (on the envelope) no later than December 31 of the same tax year. Because of the high volume of year-end gifts, contact your IRA administrator as soon as possible to allow enough time for them to issue your gift before the end of December.

Will there be an opportunity to make IRA charitable rollovers retroactively in the spring following the tax year as was permitted in previous years?

No. Eligible gifts must be received or postmarked by December 31.

May I make a gift from my IRA if I have already taken my required minimum distribution (RMD)?

Yes. You can exclude up to $100,000 (for each IRA account owner) from gross income for qualified charitable donations. While the donation counts toward your RMD, it is not limited by your RMD.

May I contribute more than $100,000 to a qualified charity from an IRA?

Yes, however, the law limits the exclusion from gross income to $100,000. Charitable contributions from an IRA in excess of the $100,000 must follow the general rules pertaining to percentage limitations and itemized contribution reductions.

Are IRA distributions already taken by me eligible to gift as qualified charitable distributions?

No. You can, however, make gifts from IRA distributions that do not meet the requirements of a qualified charitable distribution. In such cases, the IRA distribution would be recognized as income for income tax purposes and would typically be eligible for a federal income tax charitable deduction.

Is my IRA charitable rollover gift eligible for an income tax charitable deduction?

No. Donors of qualified IRA gifts do not receive a federal income tax charitable deduction for the IRA gift, as they are not being taxed on the withdrawal.

Are there other tax advantages to making a gift through a qualified IRA?

Yes! Qualified IRA gifts are not subject to percentage of adjusted gross income (AGI) limitations for charitable contributions and are not reportable as income for federal income tax or for Social Security income purposes. In most states the amounts withdrawn are not subject to state income taxes. Donors who do not itemize deductions on their federal income tax returns may benefit from qualified IRA gifts because of the gifts’ exclusion from gross income. Amounts withdrawn from an IRA account are removed from the donor’s taxable estate. We urge you to consult your tax advisor to learn which benefits apply to your specific situation.

What types of charitable gifts are not eligible for IRA charitable rollover gifts?

Most gifts to a private foundation, donor-advised fund, or supporting organization are not eligible. Gifts to a charitable remainder trust, lead trust, pooled income fund, or charitable gift annuity are also not eligible. Gifts for which the donor receives a benefit that reduces the donor’s tax deduction—such as tickets or dinner—are not eligible.

Are gifts from retirement plans other than an IRA eligible?

No. However, donors may be able to make qualified transfers from their pension or retirement plan—such as a 401(k) or 403(b)—to their IRA, and then make a charitable gift from their IRA account.

What is Kapaun Mt. Carmel’s legal name and tax ID number?

Our legal name is: Kapaun Mt. Carmel Catholic High School, Catholic Diocese of Wichita

Our tax ID number is: 48-0543780

Our address and contact information for estates and trusts is:

Office of Advancement

Kapaun Mt. Carmel Catholic High School

8506 E. Central

Wichita, KS 67206

316.634.0315

This is not intended to be legal or tax advice. We encourage you to consult your own legal or tax advisor.