Just for You
Charitable Rollover provision has been renewed for 2015! To make a gift from your Individual Retirement Account (IRA) to support students at Onondaga Community College, with no tax penalty, an IRA charitable roll-over may be an excellent option.
For example a donor age 70 1/2 and over who makes a $10,000 IRA roll-over gift to Onondaga Community College, by year-end 2015 will see the following benefits:
If you would like to take advantage of this year-end
tax benefit, please call Lisa Moore at 315-498-6060.
The charitable IRA rollover, or qualified
charitable distribution (QCD), is a special provision allowing certain donors
to exclude from taxable income -- and count toward their required minimum
distribution -- certain transfers of Individual Retirement Account (IRA) assets
that are made directly to public charities, including the Onondaga Community
College Foundation, Inc.
A charitable IRA rollover makes it easier to use
IRA assets, during lifetime, to make charitable gifts.
Under current law, withdrawals from traditional
IRAs and certain Roth IRAs are taxed as income, even if they are immediately
directed to a charity. The donor receives a tax deduction for his or her
donation, but various other federal, and sometimes state, tax rules can prevent
the deduction from fully offsetting this taxable income. As a result, many
donors have chosen not to use IRA assets for lifetime gifts. The charitable IRA
rollover eliminates this problem for a limited time.
A gift that qualifies, technically termed a
“qualified charitable distribution,” would be:
Yes, there is a limit. An individual taxpayer's
total charitable IRA rollover gifts cannot exceed $100,000 per tax year.
If you have not already taken your required minimum
distribution in a given year, a qualifying rollover gift can count toward
satisfying this requirement.
No. The gift would be excluded from income, so
providing a deduction in addition to that exclusion would create an
inappropriate double tax benefit.
Withdrawals from a Roth IRA may be tax-free only if
the account has been open for longer than five years or if certain other
conditions apply. Otherwise, withdrawals are taxed as if they came from a
traditional IRA. Therefore, certain Roth IRAs could benefit from a charitable
No. However, it may be possible to make a tax-free
transfer from such other accounts to an IRA, from which a charitable rollover
can then be made.
No. Excluded are:
No. The donor can receive no benefits in return for
the gift. This includes life income plan payments.
The only permissible benefits from a charitable IRA
rollover gift are those that would not reduce the tax deduction for which the
donor would have otherwise qualified.
It simply will be included in taxable income as
other IRA withdrawals currently are.
While this is a great option, other types of gifts
may provide donors with more tax benefits. As with any gift planning question,
donors should consult their tax professionals for specific advice.
Absolutely! Whether or not you choose to make a
charitable IRA rollover gift, you can still designate the Onondaga Community
College Foundation Inc. as a beneficiary to receive IRA assets after your
lifetime. The lifetime charitable IRA rollover is simply another option for
donors who would like to see their philanthropy at work now.
Yes. Even if you and your spouse both made the
maximum $100,000 charitable IRA rollover gift to a qualifying charity during
one or more previous years, you can still take advantage of this legislation
again for the 2015 tax year.
Contact the Onondaga Community College Foundation
Office by phone at 315-498-6060 or email firstname.lastname@example.org
Onondaga Community College
Explore. Discover. Transform.
4585 West Seneca TurnpikeSyracuse, NY email@example.com
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