IRA Charitable Rollover

Dear Pastors and Pastoral Leaders,

It is once again time to encourage parishioners to make tax-favored charitable gifts from IRA accounts to their parish, the Catholic Foundation, or the Bishop’s Appeal Endowment free of federal income tax.  Please remind them to make their gift by the first week in December to avoid any processing delays.

On December 18, 2015 legislation was signed into law that makes the IRA rollover permanent. Gifts transferred directly from a donor’s IRA to charity, at any point during 2016, will qualify as a rollover gift.  This law is also permanent, meaning future gifts will also be treated in the same way.  A total of up to $100,000 can be transferred directly from an IRA to your favorite 501 (c) (3) charity.  There may also be state income tax savings.

To make such gifts, it is important not to withdraw funds prior to a gift.  Instead, distribute the funds directly from an IRA to one or more qualified charities. For those with check writing privileges on their accounts, this may be the most efficient way to make gifts directly from an IRA.

To recap, below is how the IRA charitable rollover works:

1. The donor must be at least 70 ½ years of age.
2. The gift must come from an IRA (not a TSA or 401(k)).
3. The gift is a direct transfer to a qualified charity (e.g. your parish) and not a disbursement to the donor.
4. There is a $100,000 aggregate limit for all 2016 direct IRA transfers to charity.
5. Transfers must take place by December 31, 2016 (no extensions!). Please encourage parishioners to make their gift as soon as possible to avoid any processing delays at the end of the month.

Check with the Catholic Foundation, your IRA administrator or tax advisor for more information.

Questions? Contact Josh Diedrich at 920-272-8197,
or email:  [email protected]

Parish Resources to Promote IRA Charitable Gifts:
IRA Rollover Fact Sheet
IRA Rollover Bulletin Ad
IRA Rollover Bulletin Articles