2013 IRA Rollover: Legacy giving to St John's from the USA
US alumni and friends of St John's who are 70½ or older can use their individual retirement accounts (IRAs) to make a gift of up to $100,000 to Cambridge in America without reporting the distribution as taxable income. Distributions must be made by December 31, 2013. The transfer, if done properly, counts toward your required minimum distribution in 2013.
On January 2, 2013, President Obama signed into law the American Taxpayer Relief Act of 2012, commonly known as the "fiscal cliff" legislation. The legislation has temporarily reopened the opportunity for some donors to make significant charitable contributions using funds from IRAs in 2013.
To benefit from this gift opportunity, the following qualifications must be met:
- You must be age 70½ or older at the time of transfer.
- The maximum amount you may transfer is $100,000 per year.
- The gift must be outright. Gifts to donor advised funds or to life income vehicles do not qualify.
- The gift must be transferred directly from the IRA account by the IRA administrator to Cambridge in America.
This option may be most useful for donors who:
- Must make a required minimum distribution from their IRA but do not need the income.
- Have exceeded their ability to claim a charitable contribution income tax deduction.
- Do not itemize their deductions.
- May have more of their Social Security income taxed by receiving additional income.
You can make a 2013 qualified charitable rollover until December 31, 2013. Restrictions apply, so consult with your advisors to determine how such a gift would affect your overall tax and estate planning, as well as the rules pertaining to the state you reside in.
To make a gift, you can send a letter to your IRA administrator requesting the rollover distribution be made to Cambridge in America in the amount that you wish to donate (up to $100,000). It should include Cambridge in America's Tax ID Number.
Please contact Eliza White of Cambridge in America with any questions.
Eliza White
Director, Major Gifts & Planned Giving
Cambridge in America
292 Madison Avenue, 8th Floor
New York, NY 10017