IRA Charitable Rollover
For individuals age 70 ½ or older, the IRA Charitable Rollover is a tax-wise way to support the Massachusetts Bar Foundation. If you are required to make annual withdrawals from an IRA account, these otherwise taxable distributions can satisfy your annual Required Minimum Distribution (RMD) and exclude these funds from your taxable income.
Each year, you (and your spouse) can transfer as much as $100,000 to the MBF. After several years of short term authorization, the IRA Charitable Rollover was made permanent through the Trade Facilitation and Trade Enforcement Act in December 2015.
This is an excellent opportunity to make a gift during your lifetime from an asset that would be subject to multiple levels of taxation if it remained in your taxable estate.
Important details and restrictions:
You must be at least 70 1/2 or older when you make your gift, and the gift must be made from an IRA--no other requirement plans (such as 401k, 403b, or SEP accounts) qualify.
Your gift must come to the MBF outright -- it cannot be used to establish a life-income arrangement or support a donor-advised fund.
The maximum amount a donor may transfer is $100,000 per year.
Although the distribution will be free from income tax, it will not generate an income tax charitable deduction.
Transfers must be made by Dec. 31 for gifts to be counted toward the required minimum distribution (RMD) for that year.
The administrator of your IRA will make the actual distribution to the MBF. For your convenience, please use this sample letter of instruction to send to your IRA administrator. Donors with check-writing ability for their IRAs may use this feature to complete their gift.