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IRA Charitable Rollover

Donate to Easterseals through an IRA Charitable Rollover

IRA Rollover provides taxpayers with a mechanism for transferring their annual Required Minimum Distributions directly to charitable organizations, in order to exclude the distributions from their taxable income while simultaneously supporting the charities of their choice.

In order to qualify, a person must adhere to certain requirements:

  • The donor must be at least aged 70 ½ at the time of the gift.
  • Distributions have to be made from the IRA trustee directly to the charity. If a distribution check is made payable to you, the distribution would NOT qualify as a QCD and would be treated as taxable income.
  • Distributions must come from a traditional IRA or Roth IRA. Some plans — such as 401k, 403b, and SEPs — are not eligible.
  • Distributions from a split-interest vehicle such as a charitable lead or remainder trust are not permitted.
  • Distributions to donor-advised funds, supporting organizations, and private foundations do not qualify.
  • The charitable distribution must be completed by December 31 in the year it is claimed.
  • Total charitable distributions cannot exceed $100,000, per taxpayer per year. If a married couple files jointly, each may contribute up to $100,000. Any amount over this cannot be excluded from gross income.
  • Donors may not retain any benefit in exchange for the donation.
  • Donors can exclude their contribution from gross income but cannot claim a charitable deduction.

Making a distribution is an easy process. Since you cannot make a distribution directly to a charity, your administrator must transfer the money directly to Easterseals. Simply contact your plan administrator and tell them you would like to make a charitable donation from your IRA. Typically, they will supply you with a distribution form for you to fill out and return.

At the end of the year, the administrator will provide you with a Form 1099-R so you can report it on your taxes. The distribution will go on your Form 1040 tax return, where you will report the distribution as a non-taxed QCD. See the Form 1040 instructions and contact your tax professional for additional information.

Questions? Please contact Kathy Flynn, Sr. Director Major Gifts & Planned Giving at 603.621.3413 or by email.


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