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IRA Rollover Q&A
Making a Gift Through Your IRA

The IRA Charitable Rollover was extended through December 31, 2013
as a provision of the American Taxpayer Relief Act of 2012. The IRA Charitable Rollover allows individuals age 70 ½ and older to make direct transfers totaling up to $100,000 per year to 501(c)(3) organizations, such as the College of Mount Saint Vincent, without having to count the transfers as income for federal income tax purposes.
  • Who qualifies? Individuals who are age 70 ½ or older at the time of the contribution (you have to wait until your actual 70 ½ the birthdate to make the transfer). 
  • How much can I transfer? $100,000 per year.
  • To what organizations can I make gifts? Tax exempt organizations that are classified as 501(c)(3) organizations, including the College of Mount Saint Vincent.
  • From what accounts can I make transfers? Transfers must come from your IRAs directly to the College. If you have retirement assets in a 401(k), 403(b) etc., you must first roll those funds into an IRA, and then you can direct the IRA provider to transfer the funds from the IRA directly to the College.
  • Does this transfer qualify as my minimum required distribution? Once you reach age 70 ½, you are required to take minimum distributions from your retirement plans each year, according to a federal formula. IRA charitable rollovers count toward your minimum required distributions for the year.
  • What are the tax implications to me?
    • Federal – you do not recognize the transfer to the College as income, provided it goes directly from the IRA provider to us. However, you are not entitled to an income tax charitable deduction for your gift.
    • State – each state has different laws, so you will need to consult with your own advisors. Some states have a state income tax and will include this transfer as income. Within those states, some will allow for a state income tax charitable deduction and others will not. Other states base their state income tax on the federal income or federal tax paid. Still other states have no income tax at all.
  • How do I know if an IRA charitable rollover is right for me?
    • If you are at least age 70 ½ and
      • You do not need the additional income necessitated by the minimum required distribution, OR
      • Your charitable gifts already equal 50% of your adjusted gross income, so you do not benefit from an income tax charitable deduction for additional gifts, OR
      • You do not itemize deductions, OR
      • You are subject to income tax deduction and exemption phase outs
  • What is the procedure to execute an IRA charitable rollover? To complete an IRA charitable rollover, the first step is to contact your IRA provider to learn their procedures. We also offer a sample letter you can send to your IRA provider to initiate a rollover. Make sure that you contact us when you direct the rollover so we can look for the check from your IRA provider.
  • Can I use the rollover to fund life-income gifts (charitable gift annuities, charitable remainder trusts, or pooled income funds), donor advised funds or supporting organizations?  No, these are not eligible.
  • Can I use the rollover to support a particular purpose of the College? As with all other gifts, you can direct your IRA Charitable Rollover gift as you see fit. However, you cannot direct your gift for a purpose from which you receive a personal benefit, goods, or services in return, such as an annual Scholarship Tribute Dinner ticket.
  • How will the College count the gift? We will give you full credit for the entire gift amount.
Have questions?  Contact Madeleine Melkonian, Vice President for Institutional Advancement and College Relations at (718) 405-3236 or 3237 or madeleine.melkonian@mountsaintvincent.edu or
Colette Atkins, Vice President for Institutional Advancement at (718) 405-3744 or colette.atkins@mountsaintvincent.edu.  

The material presented on this website is not offered as legal, tax, or other professional advice. It is not to be relied upon for the purpose of avoiding any penalties that may be imposed under the Internal Revenue Code. We strongly encourage you to work with counsel to discuss your personal situation.