Individuals age 70 ½ years or older have a unique way of providing a charitable gift to the College of Veterinary Medicine. Tax-free gifts totaling up to $100,000 per calendar year can be made directly from an individual’s IRA to the Iowa State University Foundation. “This giving opportunity is particularly beneficial for donors who may not need their annual required minimum distribution or who want to make a larger tax-free charitable gift from an IRA,” said Trent Wellman, director of development with the College of Veterinary Medicine. This is advantageous to the donor because if the IRA is gifted directly to the ISU Foundation, the IRA distribution does not need to be reported as income. It is further advantageous to individuals who do not itemize their deductions on their federal tax returns. “The other advantage is that individuals who gift an IRA to the college can see their philanthropic dollars at work now,” Wellman said “Individuals are jump-starting the legacy they wish to leave and can see how this financial support will help the college, its faculty and students.”
Some things to note:
- You must be 70 ½ years of age or older when the distribution is made.
- The transfer must go directly to the Iowa State University Foundation.
- You may make tax-free transfers from your IRA to a charity or charities totaling up to $100,000 each calendar year. If you are married, your spouse may also be eligible to make such gifts up to $100,000 from his/her IRA.
- A charitable rollover gift from your IRA will count toward your minimum distribution requirement.
If you are interested in learning more about the IRA charitable rollover visit http://giftplanning.isugift.org/ira-charitable-rollover.