Ann Arbor Area Community Foundation

Gift Options: IRA Charitable Rollover

If you are 70 1/2 or older, the IRA Charitable Rollover is a great way for you to make an IRA rollover gift to support the causes you care about. IRA rollover gifts can make a huge difference. These gifts will help sustain us in our important work.

The IRA rollover allows donors 70½ or older to transfer up to $100,000 directly from their IRA to charity each year. Congress has made the IRA charitable rollover permanent. An IRA rollover gift is a way for you to support our cause today without impacting your checking or savings account balance. Gifts made from an IRA (up to $100,000 per year) are not reportable as taxable income. You also qualify for the required minimum distribution (RMD) which can lower your income and taxes. In addition, making an IRA rollover gift may prevent you from:

  • being bumped into a higher federal and/or state income tax bracket
  • hitting the phaseouts on your deductions and personal exemptions
  • falling into the Alternative Minimum Tax (AMT)
  • incurring the Affordable Care Act (ACA) tax

You can benefit from giving from your IRA if you...

  • Wish to make a significant gift without using cash or other assets.
  • Do not need all or a portion of your IRA income.
  • Are paying too much in taxes and are looking to reduce your income.
  • Do not itemize deductions. Because a rollover gift can reduce your income and taxes, you can still benefit from charitable giving even as a non-itemizer.
  • Want to give over and above your normal giving this year. An IRA rollover gift does not count towards the 50% annual limitation on charitable gifts.

This gift opportunity only works for IRAs. If you own another type of qualified retirement plan, such as a 401(k) or 403(b), you must first make a tax-free rollover of funds into an IRA. Then you can make the gift from the IRA account to support our work.

If you are considering making an IRA rollover gift, contact your IRA plan administrator to learn their procedure for making a rollover gift to charity. AAACF's Shelley Strickland, VP for Development, would be happy to talk to you more about this wonderful gift opportunity.