Charitable IRA Rollover

A qualified charitable distribution is one made on or after the IRA owner attains age 70 ½ and is made directly from the IRA trustee to a qualified charity. The distribution is not included in the taxpayer's gross income for the year. To avoid double-dipping, the IRA owner does not get a charitable contribution deduction for the direct distribution. The tax benefit was allowed by excluding the distribution amount from gross income. Although a direct distribution from an IRA to a charity is not included in the taxpayer's gross income, it is treated as satisfying the taxpayer's required minimum distribution.

Benefits of an IRA charitable rollover

  • Avoid taxes on transfers of up to $100,000 from your IRA to the Minot Area Community Foundation
  • Satisfy your required minimum distribution (RMD) for the year
  • Reduce your taxable income, even if you do not itemize deductions
  • Make a gift that is not subject to the 50% deduction limits on charitable gifts
  • Support your favorite North Dakota community or charity forever with a gift to their endowment fund, or contribute to our Statewide Greatest Needs Fund.

How an IRA charitable rollover gift works

  • Contact your IRA plan administrator to make a gift from your IRA to MACF.
  • Your IRA funds will be directly transferred to MACF to support the community or charity you desire.  Please indicate which existing MACF fund you wish your gift to support or let us know if you wish to create a new fund.
  • Please note that IRA charitable rollover gifts do not qualify for a charitable deduction.
The annual limit for a direct tax-free distribution is $100,000 per taxpayer. This can benefit both low and high income taxpayers. Your tax advisor can help you understand the benefits of this rule and whether it fits your plans.

 
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