IRA Charitable Rollover

Making a gift through your IRA is a simple process that allows you to do more with your charitable dollars. If you’ve not considered it before, see below to learn more about this opportunity to support Tri Sigma.

Who can participate and how much can they give? 

In December 2015, Congress passed the IRA Charitable Rollover, allowing those over age 70½ to transfer up to $100,000 per year from their IRA accounts to charities like the Tri Sigma Foundation without first having to recognize the distribution as income. More recently, two newer changes in legislation may affect your charitable giving: the SECURE Act and the CARES Act.

How do I make my contribution?

Download our simple template to initiate a qualified charitable distribution via your plan’s custodian. Because gifts must be processed by December 31 to count for this tax year, I encourage you not to wait to learn more about the benefits of this opportunity!

I have questions!

For more information on how these acts may affect you, please see our Frequently Asked Questions below or visit www.irs.gov.

IRA Charitable Rollover Frequently Asked Questions

What is an IRA Charitable Rollover?
An IRA Charitable Rollover is a provision giving certain donors the opportunity to exclude transfers of Individual Retirement Account (IRA) assets from their taxable income when transferring gifts directly to public charities.

What gifts qualify for an IRA Charitable Rollover?
A qualified charitable contribution would be:

  • Made from a donor age 70 ½ or older.
  • Transferred directly from an IRA to a public charity, such as the Tri Sigma Foundation.
  • Completed within the applicable tax year.

What are the benefits and limitations of this opportunity?
The only benefit a donor receives from making an IRA Charitable Rollover gift is not having to recognize the distribution as income. There is no tax deduction for this type of gift. A qualifying rollover gift can help satisfy your required minimum distribution for the year. However, a donor’s charitable gifts made by an IRA rollover cannot exceed $100,000 in one tax year.

Why might I choose to make a gift through an IRA rollover?
This might be a good option for you, if:

  • You have significant assets in an IRA.
  • You are making large gifts in relation to your income.
  • You have so few deductions that you choose not to itemize.

Is the charitable IRA rollover right for me?
An IRA Charitable Rollover gift is a great option for donors who qualify; however, there are other tax-advantaged charitable planning vehicles that may provide additional benefits. While the Tri Sigma Foundation staff cannot provide legal or tax advice, we can visit with you about options available to meet your charitable and financial goals.

When can I make a gift with an IRA rollover?
To complete a required minimum distribution for 2021, transfers must be complete by December 31. To count towards a required minimum distribution for 2022, transfers may be made January 1 to December 31. Contact your IRA administrator for more information.

How do I make an IRA Charitable Rollover to the Tri Sigma Foundation?
Share the IRA custodial letter (see reverse) with your IRA custodian to share your intent to make a charitable rollover gift. Your custodian will work directly with the Foundation to distribute your gift. Please also contact Chris Smithhisler, Advancement Officer, to share your intent. We want to ensure your gift is designated correctly and confirm how you would like to be recognized. You can contact Chris via email at csmithhisler@trisigma.org.

What legislative changes could affect my charitable giving?
The SECURE (Setting Every Community Up for Retirement Enhancement) Act changed the age requirements for required minimum distributions (RMDs): if you reached the age of 70 ½ in 2019, you were required to take your first RMD by April 1, 2020. If you reach age 70 ½ in 2020 or later you must take your first RMD by April 1 of the year after you reach 72. The CARES (Coronavirus Aid, Relief, and Economic Security) Act suspends the requirements for RMDs for the 2020 tax year.

Can I still make the Tri Sigma Foundation a beneficiary of my IRA?
Of course! Naming the Tri Sigma Foundation as a beneficiary of your IRA is a simple way to honor our sisterhood in your estate plans, regardless of your decision to make an IRA rollover gift. Doing so will also make you a member of the Foundation’s Heritage Society.