IRA Charitable Rollover

IRA Charitable Rollover Extended ... Now You Can Use Your IRA Account for Tax-Free Gifts!

The Tax Relief, Unemployment Insurance Reauthorization and Job Creation Act of 2010 extended the IRA Charitable Rollover for 2011. So if you're age 70½ or older, you can now use your IRA to make charitable contributions to Knox College without your withdrawals being counted as taxable income-less taxable income means less tax paid! Fill out a Qualified Charitable Distribution form.

What Does This Mean to You?

Say you have $500,000 in an IRA and will be required to withdraw approximately $25,000 this year. You can authorize the administrator of your IRA to transfer all or a portion of the withdrawal to Knox. If you decide to contribute $20,000 and have $5,000 distributed to you, the $20,000 will count toward your annual minimum distribution but will not be included in calculating your income that is subject to tax.

Qualified distributions can total up to $100,000 per year for the tax year 2011. If your spouse has a separate IRA account, you can each contribute up to $100,000. You cannot claim a charitable deduction for IRA gifts, but because the IRA distribution is not included in your income calculation, you may not need a deduction because your IRA gift will have effectively saved you between 15% and 35% in income taxes (based on your tax bracket).

How Your Gift Can Qualify

For your IRA withdrawal to qualify as a tax-free gift:

• You must be age 70½ or older at the time of the gift.
• Transfers must be made from a traditional or Roth IRA account. Gifts from other Qualified Plans (401k, 403b, SEP, Keogh) are not eligible for this tax treatment. However, assets from these plans may be transferred to a new IRA and a distribution can then be transferred directly to Knox.
• Transfers must be made by your plan provider from your IRA account directly to Knox College. Funds you withdraw and then contribute do not qualify.
• Gifts must be outright. Distributions to donor-advised funds, supporting organizations, or life-income arrangements such as charitable remainder trusts and gift annuities are precluded.

Make Your Gift Today!

Tax-free gifts from IRA accounts are a simple way to support Knox College. Fill out a Qualified Charitable Distribution form.