On Friday, Dec. 18, 2015, President Obama signed into law the Protecting Americans from Tax Hikes Act of 2015, extending the IRA Charitable Rollover permanently. The extension allows individuals age 70½ and older to donate up to $100,000 from their IRAs to Viterbo University and other eligible charities tax-free.

Advantages of an IRA Charitable Rollover Gift

1. Donors can transfer up to $100,000/year directly from a Traditional or Roth IRA to a qualified charity, including Viterbo, without paying income taxes on the funds transferred.
2. For donors who do not itemize deductions, a gift from an IRA is excluded from reportable in-come, thus simplifying tax returns. Donors must be 70 ½ years old or older when making the qualified charitable distribution.
3. Direct Transfers from an IRA can satisfy the IRS Required Minimun Distribution (RMD)

Rules and Regulations for an IRA Charitable Rollover

1. The donor must be 70½ or older on the day of the gift.
2. The donor transfers up to $100,000 directly from the donor’s IRA to one or more qualified charities. This opportunity applies only to IRAs and not to other types of retirement plans.
3. The gift must be transferred from a traditional or Roth IRA directly to an eligible charity, such as Viterbo University.
4. The donor pays no income tax on the gift. The transfer generates neither taxable income nor a tax deduction, so donors benefit even if they do not itemize their deductions.
5. The gift can satisfy all or part of the required minimum distribution for the year.
6. The gift may not be used to fund a gift annuity, charitable remainder trust, donor advised fund or private foundation.
7. The donor does not receive any goods or services in return for the rollover gift in order to qualify for tax-free treatment.
8. If you have made a gift of up to $100,000 directly from an IRA in 2015, the gift will qualify under the new law. Please visit with your IRA custodian in order to verify your transfer in light of this new legislation.

This information is credited to the IRS website on their Charitable Donation from IRA’s page. To view this page please click here.

Thank you for your continued support to Viterbo University. Contact Wendell Snodgrass if you have any questions in regard to the IRA charitable rollover. IRA transfers can be directed to the program or activity of your choice. You can reach Wendell at (608) 796-3074 or wcsnodgrass@viterbo.edu.