Charitable IRA Rollover Gifts
The Charitable IRA Rollover Is Back!
When Congress passed the American Taxpayer Relief Act (ATRA) on New Year's Day, a special benefit was included. The Charitable IRA Rollover was extended for certain charitable distributions made for 2013.
If you are 70½ or older, the return of the charitable IRA rollover may be good news for you. Under the American Taxpayer Relief Act of 2012, you can make tax-free distributions up to $100,000 directly from your IRA for qualified charitable purposes. Making your gift can be a simple process, without tax complications. Your gift may also count toward your mandatory annual withdrawal. Many KQED supporters know that charitable beneficiary designations of their retirement benefits make good estate planning. This legislation brings back similar tax benefits for gifts made now—while you are able to enjoy the benefits of your generosity.
You may contribute funds from your IRA to KQED if:
- you are age 70½ or older
- you give no more than a total of $100,000 per year ($200,000 for couples)
- you complete the gift on or before December 31, 2013
- you direct the transfer of funds directly from an IRA. (You cannot withdraw the funds yourself.)
How to make a gift: Direct your IRA trustee or custodian to transfer your desired gift amount to KQED. (KQED can provide a form letter to request the transfer.)
We urge you to also consult your tax advisor before completing a gift under this law.
For more information, please contact the appropriate KQED representative:
- KQED Leadership Circle - gifts of $500 to $1,499 firstname.lastname@example.org, 415-553-2345
- KQED Signal Society - gifts of $1,500 to $9,999 email@example.com, 415-553-2300
- KQED Producer's Circle - gifts of $10,000 and more firstname.lastname@example.org, 415-553-3312
- KQED Legacy Society - Endowment gifts and Legacy gifts through retirement plan beneficiary designations email@example.com, 415-553-2230
Or contact Earl Blauner, Senior Director, Gift Planning and Endowment, at 415-553-2861 or firstname.lastname@example.org, or Karen Marek, Director of Gift Planning, at 415-553-2434, or email@example.com with any questions.
To learn more about the American Taxpayer Relief Act (ATRA) and how it may impact your tax planning, please refer to:
- IRS reporting and other requirements you can share with your tax advisor, Charitable Donations from IRAs for 2012 and 2013
- The Sharpe Group white paper, Overview of the Philanthropic Impact of the "American Taxpayer Relief Act of 2012"
- Visit or subscribe to KQED's Monthly Planning Tips
Estate Gifts from IRAs Still a Great Idea
While Charitable IRA Rollover Gifts allow donors to further their philanthropic goals and reduce taxable income, designating charitable organizations as beneficiary of IRA, 401(k), pension or other retirement plans also has its benefits. For many years advisers have been telling clients that IRAs are the very best asset to leave to worthwhile organizations in their estate plans. Income taxes and — for large estates — estate taxes and generation-skipping transfer taxes can markedly reduce the retirement savings accounts of many people at death, leaving a much reduced amount for heirs.
A more satisfying option might be to designate a charity as a beneficiary of all or part of your retirement account and preserve the gifted funds free from estate and income tax, while leaving other, more favorably taxed assets for heirs. To make KQED a beneficiary of your retirement plan, simply ask the trustee or custodian of your account for a beneficiary designation form and list KQED Inc.
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