IRA Charitable Direct Rollovers

Enjoy Tax Benefits, Make a Difference

Legislation signed at the end of 2015 permanently extended the IRA Charitable Rollover, making this popular gift option an established way to give. If you are 70½ or older, the IRA Charitable Rollover is an exceptional opportunity for you to make a charitable gift and satisfy your annual required minimum distribution without paying taxes.

How an IRA Rollover Works

  • Direct a transfer from your IRA account to Fort Wayne Children's Foundation

  • Exclude the gift amount from your income for federal tax purposes

  • Count the gift toward your required minimum distribution for that year

  • Make a positive impact on our work

Who Benefits?

Whether you want to make a gift of $100, $1,000, or $100,000 (the maximum allowed for a charitable rollover), this is a simple, effective way to make a difference, meet your annual distribution requirements, and enjoy tax benefits. Since all IRA account holders are required to take taxable minimum withdrawals after age 70½, if you want to make a gift, this option can be an effective way to avoid the income tax that would be due on your required withdrawals.

Instruct your IRA custodian to transfer a specific dollar amount directly to us.

It's that simple - a direct transfer with an instant impact! Because you do not include the IRA Charitable Rollover amount at income, if you're over 70½ you should always consider this source of charitable funds before giving cash or writing a check.

Some IRA Charitable Rollover Rules

  • You must be 70½ or older on the date of the distribution to participate
  • You direct the distribution to a qualified charity like us
  • Every year, you may exclude the gift amount (up to the maximum amount) for federal income tax purposes
  • The amount directed to us counts toward your required minimum distribution
  • The IRA trustee reports the qualified charitable distribution on a 1099-R form, and you list the distribution as non-taxable on your federal 1040 income tax return

Benefits with Limitations

An IRA Charitable Rollover provides benefits with some important limitations. You may not:

  • Take an income tax charitable deduction for the rollover
  • Direct the rollover to fund a gift annuity or a charitable remainder trust
  • Direct the rollover to a donor advised fund or a Sec. 509(a)(3) supporting organization
  • Roll over funds from a 401(k), 403(b), 457 plan, etc. - only distributions from a traditional or Roth IRA qualify (and there is less incentive to use a Roth IRA since Roth distributions are tax free)

The Next Step

The check is payable to the Fort Wayne Children's Foundation, Inc. Mailed to 429 E. Dupont Road PMB 189 Fort Wayne, IN 46825. Upon Receipt we will forward an acknowledgement.

To lean more about how the IRA Charitable Rollover might fit into your plans, feel free to contact us. We are happy to address any questions or concerns or to discuss how this simple but attractive charitable giving option can help you realize your philanthropic and planning goals.