IRA donation

UNF alumni and friends frequently ask us whether they can support their favorite college, program or non-academic unit through a current gift from their retirement plan assets. In the past, tax consequences made such a gift impractical.

 

However, Oct. 3, 2008, Congress passed and the president signed the Emergency Economic Stabilization Act of 2008 (H.R. 1424), legislation that includes a two-year extension of the IRA charitable rollover. The provision, originally enacted as part of the Pension Protection Act of 2006 (PPA), permits IRA owners starting at age 70½ to make tax-free charitable gifts totaling up to $100,000 per year from their IRAs directly to eligible charities, such as UNF Foundation. This is wonderful opportunity to support the University of North Florida and avoid income taxes.

 

The New Law:

  • Allows for direct rollover contributions of up to $100,000 per year. No income tax deduction is allowed for the gift because you received a tax break when you funded the IRA.
  • Permits you to consider your charitable rollover as if it is your mandatory withdrawal for the year. If you do not need the income from the IRA but you have no choice because you have reached 70 ½ then this law allows you to make a direct rollover gift and reduce or eliminate your mandatory withdrawal for the year.
  • Is a limited opportunity available only in 2008 and 2009. If you have already pledged to make contributions over the next few years, you and your advisor may decide that this is the right time to accelerate your pledge payments
  • Is restricted to outright gifts only. The rollover gifts may not fund charitable gift annuities, charitable remainder trusts, or donor advised funds.
  • Applies only to IRAs. However, you may be able to complete a rollover of 401(k) or 403 (b) retirement funds to an IRA and then complete the gift from the IRA account.  

If you or your advisors have any questions, download our new brochure The IRA Charitable Rollover – A New Incentive for Charitable Giving [pdf] 

 

Brandon McCray

Assistant Vice President, Development

(904) 620-2557

brandon.mccray@unf.edu

 

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