Giving to WILL through your IRA
It’s part of a “charitable rollover” provision that allows individuals to make gifts directly to non-profit organizations like WILL. Charitable IRA Rollover gifts count toward a donor’s required annual minimum distribution, which reduces taxable income.
Charitable IRA Rollover guidelines
Donors must be age 70 ½ or older and own an IRA. Other retirement plans such as pensions, 401(k) and 403 (b) plans are not eligible.
Individual donors may make gifts up to $100,000 through year-end 2011.
Only the IRA trustee or custodian can transfer the gift. If a donor withdraws funds and then contributes them separately, the withdrawn amounts will be included in the donor’s gross income.
Gift amounts are not included in the donor’s taxable income. Accordingly, a charitable deduction is not allowed.
Transfers can only be made to public non-profit organizations such as WILL.
IRA gifts cannot be used to fund “life income gifts” such as charitable gift annuities or charitable remainder trusts.
Learn more by consulting your financial advisor or by calling Danda Beard at WILL, 217-333-7300.