End of Year IRA Charitable Rollover

End of Year IRA Charitable Rollover

As we approach the end of the year, Oklahoma City University School of Law reminds you that the IRA Charitable Rollover is a simple and unique way for baby boomers and previous generations to avoid taxes on their required minimum distribution (RMD) while supporting their favorite charitable cause!

Federal legislation allows individuals 70 ½ or older to make gifts directly from their IRA to qualifying charities like Oklahoma City University. This gift is excluded from your gross income, which could mean lower taxes for you. This gift counts as part of your RMD for 2017. This is an easy, convenient, and tax-beneficial way to make a gift from one of your major assets.

To qualify for these benefits in 2017:
• You must be 70 ½ or older at the time of your gift.
• Your gift must be received on or before December 31st.
• Transfers must be made directly from a traditional IRA account by your IRA administrator to OCU.
• Gifts must be outright. Distributions to donor-advised funds or life-income arrangements such as charitable remainder trusts and charitable gift annuities do not qualify.
• Gifts from 401k, 403b, SEP and other plans do not qualify. Ask your financial advisor if it would be right for you to create a traditional IRA account so you can benefit from the IRA Charitable Transfer.

Advantages of using the IRA Charitable Rollover:
• Donate up to $100,000 annually.
• IRA Charitable Transfers are excluded from gross income for federal income tax purposes on your IRS Form 1040. (For this reason, you receive no charitable deduction.)
• Donations count towards your RMD for the year in which you made the gift.
• If you file a joint return, your spouse can also donate towards OCU and exclude up to $100,000!

To learn more, contact Stephen Butler at 405.208.7100 or sgbutler@okcu.edu.