Page 28 - Inventing Tomorrow

GIVING
MATTERS
KIM DOCKTER
Director of External Relations
Great news. IRA charitable Crollover permanently extended.
ongress has nally passed a law permanently extending the popular tax-advantaged IRA Charitable Rollover provision. On Dec. 28,
2015, President Obama 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, with no expiration date for future years.
Previously, the IRA charitable rollover provision—which was enacted by Congress in 2006 as a two-year temporary measure—had been extended in two-year increments through Dec. 31, 2013, and as a one-year increment through Dec. 31, 2014.
From now on, under the rollover provisions, donors age 701⁄2 or older are able to contribute up to $100,000 annually from an IRA account and
avoid federal tax consequences. When the amount withdrawn from the IRA account is paid directly to the charity, it is not counted as federally taxable income. In addition, the IRA charitable gift amount counts against the donor’s required minimum distribution (RMD). However, the gift may not be counted as a charitable deduction on federal tax returns.
Donors who wish to make a gift to bene t the College of Science and Engineering, or who are ful lling an existing pledge, may want to make a Quali ed Charitable Distribution.
Here are the speci cs:
• Donors must be age 701⁄2 or older at the time
the gift is made.
• Only traditional IRAs are eligible.
• Donors must request a direct transfer of funds
from their plan administrator to a quali ed public charity. It is important to not withdraw funds prior to a gift.
• Generally, gifts cannot be made to a private foun- dation.
• Gifts cannot be made to a donor advised fund. • Gifts cannot be used to fund a gift annuity or
charitable remainder trust.
• Each donor may give up to $100,000 per
year. For couples, each spouse can give up to
$100,000.
• Distributions made under this law can be
used to satisfy the donor’s required minimum distribution (RMD). The rollover allows for a charitable gift to ful ll the RMD without adding to tax liability.
Making a gift to the University from an IRA
Contact your IRA plan administrator and request a direct Quali ed Charitable Distribution from the IRA account to the University of Minnesota Foundation, a 501(c)(3) organization, with Tax ID number 41-6042488.
Mail the check to:
University of Minnesota Foundation Attn: IRA Gift Processing
200 Oak Street SE, Suite 500 Minneapolis, MN 55455
For more information or assistance with making an IRA gift, please contact Kim Dockter at 612-626-9385 or by email: dockter@umn.edu.
The U of M Foundation cannot give tax or legal advice. Please consult your own professional tax advisor about the best way to take advantage of this opportunity.
28 INVENTING TOMORROW