IRA Rollover Gifts for Donors 70-1/2 or older
How It Works
- You are 70½ or older and instruct your plan administrator to make a direct transfer of up to $100,000 to Women In Distress
- Plan administrator makes transfer as directed to Women In Distress
- Your gift is transferred directly to Women In Distress; since you do not receive the funds, they are not included in your gross income*
- Your gift will count towards your minimum distribution requirement
- You support the programs that are important to you at Women In Distress
*No income-tax deduction is allowed for the transfer.
Did you know?
Income taxes on assets in a retirement plan are deferred but not avoided. That means as these assets are withdrawn during retirement they are subject to federal income taxes.
Withdrawing funds from your retirement plan and making a gift of some or all of those funds to support WID will create two tax events: The withdrawn funds will be subject to federal income tax, but the amount contributed to WID will generate a charitable deduction that will offset some or all of the tax. The end result if the entire amount is contributed is a wash for federal income-tax purposes.
However, for some individuals the deductible amounts on federal and state tax returns will be less than the taxable distributions, in which case it will not be a wash.
Please note that withdrawals by those 59½ or younger will be subject to early-withdrawal penalties unless the donor falls within certain exceptions.
Special Opportunity for Donors Aged 70½ and Older
A direct transfer from your IRA to WID can be excluded from your gross income, but no income-tax deduction is allowed for the transfer. To qualify for this benefit:
- You must be 70½ or older at the time of your gift
- The transfer must go directly from the IRA to WID
- Your total IRA gift(s) cannot exceed $100,000 per year
- Your gift must be outright