The Charitable IRA Rollover Gift

As part of the “fiscal cliff” deal, Congress has resurrected a popular tax-law provision, known as the “IRA charitable rollover,” that had expired at the end of 2011. Section 208 of the American Taxpayer Relief Act of 2012 (ATRA) permits individuals who have received an IRA distribution in December of 2012 to make a cash gift prior to February 1, 2013 and still have a qualified charitable distribution (QCD).

Up to $100,000

If you are 70 and 1/2 or older, you can donate up to $100,000 a year directly from your Individual Retirement Account to The Salvation Army and receive the equivalent of a 100% income tax charitable contribution deduction.

Traditional and Roth IRAs

Both Traditional and Roth IRA’s may be used to make the gift. The Charitable IRA Rollover Gift must be made directly by the IRA custodian to The Salvation Army. The gift is a completely tax-free transfer. The gift amount is not included in the donor’s income, and the donor receives no income tax charitable contribution deduction for the gift. The completely tax-free transfer provides the equivalent of a 100% income tax charitable deduction for the gift.

Minimum Distributions

You can also direct your required minimum distribution to The Salvation Army and thereby reduce your taxable income.

Contact Us Today!

Contact us about your gift and for any other assistance we may be able to provide in requesting the transfer and completing the gift.

Amy_Cline@uss.salvationarmy.org