IRA CHARITABLE ROLLOVERS
Due to recently enacted legislation, you may be able to make a gift to charity with a distribution from your Individual Retirement Account (IRA), and take advantage of tax savings. Under The Protecting Americans from Tax Hikes Act of 2015, Americans over the age of 70 ½ can distribute up to $100,000 in a calendar year from an IRA to Stanford or other charities, tax-free. This distribution to charity can be a significant benefit for IRA owners who are required each year to take minimum required distributions, which are included in their gross income for income tax purposes.
If an IRA owner directs the IRA plan administrator to distribute any amount up to $100,000 to charity, the distribution counts toward the owner’s minimum required distribution, but is not included in his or her income for income tax purposes. Although the IRA owner is not entitled to a charitable deduction for the distribution, the distribution benefits charity. This option is known as the “IRA charitable rollover”