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Act Now to Take Advantage of the Charitable IRA Rollover

Author: Stephanie Miller
Published: December 24, 2014
On December 16, the Senate passed HR 5771, the Tax Increase Prevention Act of 2014, which includes an extension through December 31, 2014 of the Charitable IRA Rollover.

President Obama signed the bill into law on December 19.

The Charitable IRA Rollover allows individuals age 70½ and older to make direct transfers up to $100,000, through December 31, 2014, from individual retirement accounts to qualified charities, such as the Phi Psi Foundation, without having to count the transfers as income for federal tax purposes. Since no tax is incurred on the withdrawal, gifts do not qualify for a charitable deduction, but may be counted toward an individual’s minimum required distribution.

Provisions of the Charitable IRA Rollover include:

 

  • Distributions must be made directly to the Phi Psi Foundation by the plan administrator of an IRA.
  • Brothers with check-writing ability for their IRAs may use this feature to complete their gift. Retirement assets in 401(k), 403(b), SEP, or SIMPLE plans do not qualify, but may be rolled into a new or existing IRA and transferred to the Foundation.
  • Donor must be age 70 ½ or older at the time of transfer.
  • The maximum amount a donor may transfer is $100,000.

To assist our brothers in taking advantage of this gifting opportunity we have provided the following resources:

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