CHARITABLE IRA ROLLOVERS – 2019
IRA Gift Rules
- Donor must be age 70½ or older on the date of the gift.
- Gifts must be made from IRA accounts only. Gifts from other retirement plans such as 401(k)s and 403(b)s are not eligible.
- Funds must go directly from the IRA provider to the charity. The donor cannot take possession of the funds.
- Total gifts may not exceed $100,000 per IRA holder per calendar year.
- Gifts must be postmarked by December 31, 2019.
- Gifts must go to a public charity (such as the Kansas 4-H Foundation). Gifts to donor advised funds or private foundations are not permitted.
- The gift must be outright. Rollovers to charitable gift annuities or charitable remainder trusts don’t qualify.
- The gift counts toward the donor’s IRA Required Minimum Distribution.
- No charitable deductions are allowed, but the gift amounts will not be included in the donors’ incomes.
Who Wins With Charitable IRA Rollovers?
- Donors who don’t itemize their deductions (i.e. those who take the standard deduction).
- Donors whose Social Security benefits are subject to income taxation.
- Donors who are subject to surtaxes on net investment income.
- Donors who are paying higher than standard Medicare premiums.
For more information, contact us:
785.532.5881
We recommend you seek the advice of your tax and/or legal counsel before deciding on a course of action.