IRA CHARITABLE ROLLOVER
The IRA charitable rollover, or qualified charitable distribution, allows individuals age 70½ and older to make direct transfers of up to $100,000 per year to qualified charities, like The North Lee Community Foundation. Individuals do not have to count the transfers as income for federal income tax purposes and transfers may satisfy your required minimum distribution.
Transfers must come from your IRA directly to the qualified charity. If you have retirement assets in a 401k, 403b or like accounts, you must first roll those funds into an IRA and then direct the IRA administrator/custodian to transfer the funds from the IRA directly to The North Lee Community Foundation.
Donor advised funds and supporting organizations are not eligible to receive IRA charitable rollover transfers. Also, IRA charitable rollover transfers cannot be made to charitable gift annuities, charitable remainder trusts and similar planned giving vehicles.
Because the transfer occurs directly from your IRA to a qualified charity, you don’t have to count the transfer as taxable income for federal tax purposes. Important to note, if you are 72 years old or older your IRA charitable rollover transfer can count as your required minimum distribution (RMD) for the year.
Who Should Consider an IRA Charitable Rollover?
The North Lee Community Foundation | P.O. Box 341, Fort Madison, Iowa 52627 | Phone: 319.670.0207 | Email: email@example.com