Charitable IRA Rollover—Legislative Update

The American Taxpayer Relief Act of 2012 has reinstated the Charitable IRA Rollover retroactively for 2012 and extends it through December 31, 2013. Originally enacted in 2006, the Charitable IRA Rollover allows individuals age 70½ and older to make direct transfers up to $100,000 per year from individual retirement accounts to qualified charities without having to count the transfers as income for federal tax purposes. Since no tax is incurred on the withdrawal, gifts do not qualify for a charitable deduction, but may be counted toward an individual’s minimum required distribution.

Recap of other provisions of the Charitable IRA Rollover:

• Distributions must be made directly to a qualified charity by the plan administrator of an IRA. Retirement assets in 401(k), 403(b), SEP, or SIMPLE plans do not qualify, but may be rolled into a new or existing IRA and transferred to the charity.

• Distributions may only be made to 501(c)(3) tax exempt organizations and cannot be made to donor advised funds, private foundations or supporting organizations.

• Distributions may not be used to fund life-income gifts such as charitable gift annuities, charitable remainder trusts or pooled income funds.

Click here to download the Charitable IRA Rollover Gift Instructions form (PDF)

Yale's tax ID# is 06-0646973

For more information, please contact:

Yale University
Office of Planned Giving
1.800.445.6086
development.plannedgiving@yale.edu

This is not intended to be legal or tax advice. We encourage you to consult your own legal or tax advisor to see how you may be affected by the new law.