IRA Charitable Rollover Giving

Here is what you need to know as you consider making an IRA charitable rollover gift to Planned Parenthood:

To qualify

  • You must be age 70½ or older at the time of your gift.
  • Transfers must be made directly from a traditional IRA account by your IRA administrator to Planned Parenthood.

Benefits

  • Individuals can roll over to $100,000 per year to qualifying charities.
  • Charitable rollover gifts are not included in your gross income for federal income tax purposes on your IRS Form 1040, so no charitable deduction is available for these gifts.
  • These gifts count towards your required minimum distribution for the year.

More about IRA Charitable Rollover

  • The minimum age requirement for IRA charitable rollover gifts is 70½, even when your required minimum distribution (RMD) may not take effect until age 72.
  • Gifts must be outright. Distributions to donor-advised funds or life-income arrangements such as charitable remainder trusts and charitable gift annuities are not allowed.
  • Funds that are withdrawn by you and then contributed do NOT qualify. Gifts from 401k, 403b, SEP and other plans do not qualify.

To make an IRA rollover contribution to Planned Parenthood, contact your account administrator for the required forms. You can also use our online tool to complete and print your forms right now.

Example

John is 70½ years old and wants to make a gift to Planned Parenthood. He has $500,000 in his IRA and wants to gift $20,000. He can authorize the administrator of his IRA to distribute $20,000 to Planned Parenthood. Because the IRA Qualified Charitable Distribution is excluded from income, John will not be eligible for a charitable income tax deduction — but he still receives tax savings. The $20,000 distributed to Planned Parenthood will be counted toward his annual required minimum distribution and he will not pay income tax on the portion given to the organization.

As you plan your required minimum distributions for this year, if you do not need the money the government is requiring you to take, consider using it for a charitable gift using the IRA Charitable Rollover.

Frequently Asked Questions

How do I make this gift? Fill out a form provided by your plan administrator, or use our online tool.

Will my gift be subject to income tax? As long as your gift is made directly from your plan administrator, qualifying IRA gifts will not be subject to federal income tax and will count toward any required minimum distribution. State laws may vary.

How do I let Planned Parenthood know about my IRA gift? Some companies do not provide the donor's name with IRA contributions. Email or call us with the name of your financial institution and amount of your gift. You may also use our online tool.

Can I use the IRA Charitable 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.

What are the tax implications to me?

Federal — You do not recognize the transfer to Planned Parenthood as income, provided it goes directly from the IRA administrator 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.

Can my spouse also make an IRA Charitable Rollover, even if we are married and file jointly? Yes, every individual can use the IRA Charitable Rollover for up to $100,000 each year.

What is the procedure to execute an IRA Charitable Rollover? You may use our online tool. We also offer a sample letter you can send to your plan 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 administrator.

If you are considering making a gift from your IRA, please contact your financial advisor to ensure your gift qualifies.

For more information, please contact us.