Information About Making Charitable Tax-Free IRA Rollover Gifts

The passage of the American Taxpayer Relief Act extended the provision to make charitable tax-free IRA rollover gifts. However, this law is set to expire on December 31, 2013. There are several things you should consider to determine if this giving option is appropriate for your situation, including:

  • Applies to individuals who are at least 70 ½ years of age during 2013.
  • Gifts from your IRA must be made directly from your IRA to a qualified charity, such as the Innocence Project of Florida.
  • You may give to more than one charity as long as your total IRA charitable rollover gifts for 2013 do not exceed $100,000.
  • If you are married, your spouse may also be eligible to make such gifts up to $100,000 from her/his IRA.
  • Charitable tax-free rollover gifts from your IRA will qualify for your annual mandatory distribution.
  • The distribution is excluded from your income. Although you cannot deduct the gift on your income tax return, the distribution is not reported as income so there is no adverse income tax effect.
  • IRA assets may not be used to fund a gift annuity, charitable remainder trust, a donor advised fund, or private foundation.
  • This law applies only to IRA accounts (either traditional or Roth). Other plans, including 401(k) or 403(b) plans, do not qualify.
  • Although this distribution is excluded from income for federal income tax purposes, you should check your state law to determine if the distribution amount may still be included for state income tax purposes.

You’ll need to give IPF’s taxpayer identification number (20-0210812) and address (1100 East Park Avenue, Tallahassee, FL 32301) to your IRA plan provider and ask them to make a distribution to the Innocence Project of Florida.

This information is not intended as legal or tax advice. For legal or tax advice, please consult an attorney or financial planner.

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