Retirement Assets – Become an IRA Donor!
As an alternative method for donating to a charity, certain taxpayers may transfer funds from their IRA to an eligible charitable organization. If you, as a taxpayer, think about making this type of donation, please read the followings:
- The IRA owner must be age 70 ½ or older.
- The donor must directly transfer the money tax-free to an eligible organization.
- The maximum amount that an IRA owner may transfer annually tax-free is $100,000 to an eligible organization.
- This option, created in 2006 and extended through 2009, is available to eligible IRA owners, regardless of whether they itemize their deductions.
- Distributions from employer-sponsored retirement plans, including SIMPLE IRAs and simplified employee pension plans – commonly referred to as SEP Plans – are not eligible.
- To qualify, the funds must be contributed directly by the IRA trustee to the eligible charity.
- Amounts transferred are not taxable and no deduction is available for the amount given to the charity unless non-deductible contributions are transferred.
- Not all charities are eligible. For example, donor-advised funds and supporting organizations are not eligible recipients.
- Transferred amounts are counted in determining whether the owner has met the IRA’s required minimum distribution rules. Where individuals have made nondeductible contributions to their traditional IRAs, a special rule treats transferred amounts as coming first from taxable funds, instead of proportionately from taxable and nontaxable funds, as would be the case with regular distributions. If non-deductible contributions are transferred to an eligible organization, a charitable contribution deduction may be allowed if itemizing deductions.
- More information about qualified charitable distributions can be found in Publication 590, Individual Retirement Arrangements.
Note: According to IRS, an organization generally must give you a written statement if it receives a payment from you that is more than $75 and is partly a contribution and partly for goods or services. Keep the statement for your records.
You can access the IRS website at IRS.gov 24 hours a day, 7 days a week. Call the IRS with your tax questions at 1-800-829-1040
You can send your order for forms, instructions, and publications to the address below. You should receive a response within 10 days after your request is received.
Internal Revenue Service
1201 N. Mitsubishi Motorway
Romanian League in Defense of Animals, Inc (ROLDA USA) is registered as a 501(c)(3) non-profit organization. Contributions to ROLDA are tax-deductible to the extent permitted by law.
ROLDA USA tax identification number is 32-0176929
For additional help, you can contact ROLDA USA representative, Mary by
Email: firstname.lastname@example.org, Mobile: 410-570-9505