Charitable Contributions From Your IRA

Updated 2018

At the end of 2015, federal legislation was passed permanently authorizing Charitable Contributions, technically a qualified charitable distribution or a charitable roll over, from your traditional IRA if you are 70.5 years or older.

Contributions to Presbyterian Peace Fellowship (or another qualified 501c3 charitable organization) up to $100,000 per year (or the amount of your annual Required Minimum Distribution whichever is less) may be excluded from your gross income.

Many PPFers are electing to take the new higher standard deduction rather than itemizing their deductions.  If you are taking the standard deduction and you are taking your Required Minimum Distribution from your traditional IRA, you can also take advantage of this additional tax savings for your charitable contributions.

Please be sure to specify if your IRA gift is intended for the PPF Annual Action Budget or the Endowment 75 Campaign.

Criteria:

  • You must be 70 1⁄2 years or older when the transfer is made.
  • The transfer must go directly from your IRA administrator to the Presbyterian Peace Fellowship (or another qualified 501c3 charitable organization).
    • Gifts to donor advised funds, charitable remainder trusts, or for charitable gift annuities do not qualify.
  • Rollover gifts are limited to $100,000 per taxpayer per year. If married, and each spouse has an IRA, then each may make a gift from their individual IRA up to $100,000 per year or the amount of their annual Required Minimum Distribution whichever is less.
  • The gift counts toward your IRA Required Minimum Distribution.
  • The distribution is not reported as income, so there is a positive income tax effect.
  • Your gift must be from your traditional IRA and not other types of retirement accounts. (Tip: If you have a 401k or 403b, roll your retirement plan to an IRA and you can use this).

Please consult your tax advisor and/or your financial advisor if you have any questions about making charitable donations from your IRA.