In years past, the IRA Charitable Rollover has been a way for brothers who are IRA owners over age 70 1/2 to escape income tax and satisfy required minimum distribution rules by making a direct distribution from their IRA to the Foundation. On December 18, 2015, the president signed into law the Protecting Americans from Tax Hikes Act of 2015. The new law made the IRA charitable rollover retroactive to January 1, 2015, and will remain in effect for 2016 and beyond.
The Charitable IRA Rollover allows individuals age 70½ and older to make direct transfers up to $100,000 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 70½ 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:
- Legal Name: Endowment Fund of the Phi Kappa Psi Fraternity (D/B/A Phi Kappa Psi Foundation; Phi Psi Foundation)
- Tax ID: 36-6130655
- Sample Letter to IRA Administrator