Here are some frequently asked questions that can help you evaluate the benefits of making a gift directly to PBS from your IRA:
What is the IRA Charitable Rollover?
The IRA Charitable Rollover allows you to make “qualified charitable distributions” directly from a retirement plan. Gifts up to $100,000 are excluded from federal income. This favorable tax treatment is followed by most states. Please consult with your tax adviser to discuss state-specific guidance.
For couples filing a joint tax return, each spouse can exclude up to $100,000 for a maximum of $200,000 each year.
What is a “qualified charitable distribution”?
You make a qualified charitable distribution if:
- You are at least 70½ years old at the time the distribution is made.
- The distribution is made from either a Traditional or Roth IRA.
- The distribution is made to a qualified charitable organization, like PBS.
- The distribution to PBS is made directly by the retirement plan administrator.
Will this distribution (also referred to as an IRA rollover gift) count towards my required minimum distribution (“RMD”)?
Yes. The IRA rollover gift will count towards your yearly RMD.
Who may benefit from an IRA rollover gift?
- Donors who do not itemize or claim a deduction for their charitable contributions.
- Donors who itemize but are unable to fully deduct their current year contributions.
- Donors who normally use withdrawn funds to make charitable gifts that are not fully deductible.
- Donors who are bumped into a higher tax bracket and phased-out of certain deductions and credits once their annual distributions are reported as income.
Can I claim a charitable deduction for an IRA rollover gift?
No. A charitable deduction is not allowed when you make an IRA rollover gift. However, you will be able to exclude the amount of the gift (up to $100,000) from your adjusted gross income on your federal return. To allow a charitable deduction in addition to the income exclusion would result in a double benefit.
Can I make a rollover gift from funds I’ve already withdrawn and deposited into my account?
No. Your rollover gift to PBS must be made directly by your plan administrator in order to meet the requirements for a qualified charitable distribution. If you receive withdrawn funds and then donate the proceeds to PBS, you will be required to count the gift as income. In some cases, you may be able to reduce the tax impact of this income by claiming a charitable deduction.
Are there any restrictions on the use of an IRA rollover gift?
Yes. The entire distribution to PBS must meet the same requirements as a fully deductible charitable contribution, so no benefits can be received in exchange for your rollover gift. Moreover, a rollover gift can not be used to fund a life income gift such as a charitable gift annuity or charitable remainder trust.
What is the process for making an IRA rollover gift?
The process varies depending on the plan administrator. Please contact the financial institution that manages your IRA to learn the process and request the proper forms for making a qualified charitable distribution. In some cases, the financial institution may require you to submit a Request for Distribution letter. You may even be able to obtain the form by going to your plan administrator’s website. We can provide you with a template if you need one, just call 703-739-8632 or send an email to email@example.com and we’ll send it along. For IRA rollover gifts, please make the check payable to PBS (Tax ID 52-0899215) to ensure that you are eligible to receive the tax benefits for your generosity.
What is the deadline for making an IRA rollover gift?
Gift must be received by December 31st for you to enjoy the full benefits in the current tax year.
Make your gift to PBS today.
For more information about the IRA Charitable Rollover, contact your plan administrator and the PBS Foundation at 703-739-8632 and firstname.lastname@example.org.