IRA Charitable Rollover

The Qualified Charitable Distribution (QCD), sometimes called an IRA charitable rollover, is available for 2016 and beyond. 

On Dec. 18, 2015, the president signed into law the Protecting Americans from Tax Hikes Act of 2015. The new law made the IRA charitable rollover retroactive to Jan. 1, 2015, and will remain in effect for 2016 and beyond.

The IRA Charitable Rollover is a great way to support ALA, your church, or other ministry!
 
Here is a recap of the details:
  • Donors must be 70-1/2 or older.
  • Funds must come from a traditional IRA. 
  • 401(k), 403(b), and other retirement plans do not qualify for the IRA Charitable Rollover.
  • The maximum gift transfer is $100,000; there is no minimum.
  • Transfers must go to a recognized charitable orgainzation; your church and ALA qualify.
  • Donors do not need to transfer their entire Required Minimum Distribution (RMD) as a charitable gift. You can split your RMD between personal income and a donation.
  • The transfer counts toward your RMD which reduces your taxable income.
  • You cannot claim the transfer as a tax deduction on your tax return.
  • The gift must be processed before the end of the calendar year.
  • You must request the IRA Charitable Rollover through you plan's account representative and have the money sent directly to the charity. The money cannot go to you first.
Download a sample letter to mail or email your IRA administrator.
 
If you have any questions about the IRA Charitable Rollover, contact Chet Jaehnig, ALA Board Chairman, office number 480-889-3198, or talk with your financial planner.