IRA Charitable Rollover

Following passage by Congress last year, the President signed into law the Protecting Americans from Tax Hikes (PATH) Act, which makes permanent the IRA Charitable Rollover option for eligible individuals.

Individuals may begin taking distributions from their Individual Retirement Accounts (IRAs) as early as age 59½ but are required to begin taking them at age 70½. Normally, these distributions are subject to income taxes. The IRA Charitable Rollover provision allows individuals who have reached age 70½ to donate up to $100,000 to charitable organizations directly from their IRA without treating the distribution as taxable income, regardless of whether they itemize their returns. To qualify, contributions must go directly to a public charity and be made from traditional IRAs or Roth IRAs. Donors may receive no goods or services in return for their contributions, and they must obtain written documentation of their contribution from each recipient charity.

FAQs

What charities are eligible? Charitable contributions from an IRA must go directly to a public charity that is not a 509(a)(3) supporting organization. Contributions to donor-advised funds and private foundations, except in limited circumstances, do not qualify for tax-free IRA rollover contributions. NorthShore University HealthSystem is an eligible tax-exempt 501(c)(3) nonprofit organization. Tax ID: 36-2167060

What types of retirement accounts are eligible? Distributions can only be made from traditional IRAs or Roth IRAs. Charitable donations from 403(b) plans, 401(k) plans, pension plans and other retirement plans are not eligible for the tax-free treatment.

Are there more specifics I should know about? Distributions must be made directly from the IRA trustee payable to the public charity. To qualify for tax-free treatment, donors cannot receive any goods or services in return for IRA Charitable Rollover contributions. To benefit from the tax-free treatment, donors must obtain written receipts of each IRA rollover contribution from each recipient charity.

All donors of planned or legacy gifts are invited to become members of The 1891 Society at NorthShore University HealthSystem. To learn more about IRA Charitable Rollovers and other planned giving options, opportunities, or recognition at NorthShore, please contact Director of Planned Giving, Kate Chappell, MBA, JD, at 224.364.7211 or kchappell@northshore.org, or visit foundation.northshore.org/PG.

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