IRA Charitable Rollover
On Friday, Dec. 18, 2015, President Obama signed into law the Protecting Americans from Tax Hikes Act of 2015, extending the IRA Charitable Rollover permanently. The extension allows individuals age 70½ and older to donate up to $100,000 from their IRAs to Viterbo University and other eligible charities tax-free.
Advantages of an IRA Charitable Rollover Gift
- Donors can transfer up to $100,000/year directly from a Traditional or Roth IRA to a qualified charity, including Viterbo, without paying income taxes on the funds transferred.
- For donors who do not itemize deductions, a gift from an IRA is excluded from reportable income, thus simplifying tax returns. Donors must be 70½ years old or older when making a qualified charitable distribution.
- Direct transfers from an IRA can satisfy the IRS Required Minimum Distribution (RMD).
Rules and Regulations for an IRA Charitable Rollover
- The donor must be 70½ or older on the day of the gift.
- The donor transfers up to $100,000 directly from the donor’s IRA to one or more qualified charities. This opportunity applies only to IRAs and not to other types of retirement plans.
- The gift must be transferred from a traditional or Roth IRA directly to an eligible charity, such as Viterbo University.
- The donor pays no income tax on the gift. The transfer generates neither taxable income nor a tax deduction, so donors benefit even if they do not itemize their deductions.
- The gift can satisfy all or part of the required minimum distribution for the year.
- The gift may not be used to fund a gift annuity, charitable remainder trust, donor advised fund or private foundation.
- The donor does not receive any goods or services in return for the rollover gift in order to qualify for tax-free treatment.
- If you have made a gift of up to $100,000 directly from an IRA in 2015, the gift will qualify under the new law. Please visit with your IRA custodian in order to verify your transfer in light of this new legislation.
This information is credited to the IRS website on their Charitable Donation from IRAs page.
Thank you for your continued support to Viterbo University. Contact Advancement at 608-796-3076 if you have any questions in regard to the IRA charitable rollover. IRA transfers can be directed to the program or activity of your choice.
Gifts given without restrictions are greatly appreciated. These gifts provide responsive funding that can be put to work toward the most immediate needs determined by the university.
You can direct your gift toward the department, scholarship, program, or sports team of your choice. A gift to a current university project or campaign is, of course, most welcome. Match your philanthropy to your passions - just make a note of your designation when you make your gift.
Many employers sponsor matching gift programs and will match charitable contributions made by their employees. To learn if your employer has a matching gift policy, click below and enter your company name.
Feel free to contact us if we can help with any information related to matching gift opportunities by calling (608) 796-3070.
An endowment is a gift that is permanently invested so that the income generated provides an ongoing source of funding. This type of giving is forward thinking and assures that your scholarship, professorship, or another program will be supported forever. We are happy to work with you to set up a pledge schedule if you choose to build an endowment over time.
Chances are if you are thinking of donating something to Viterbo other than cash, it is considered an in-kind gift. These tangible items may be given and provide considerable value to Viterbo with no cash outlay.
Planned giving is a term that describes a wide variety of giving vehicles that allow you to give to charity during or after your lifetime while meeting your current income needs and providing for your heirs. Planned giving is often done in conjunction with estate planning, and is a viable option for benefactors at all income levels. More information on planned giving.
Retirement Plan Assets
Retirement plan assets make a tax-wise gift to Viterbo University. If your children are the beneficiaries of your retirement plan assets, federal income taxes may erode up to 39.6 percent of the amount they receive from your plan. In contrast, as a nonprofit organization, we are tax-exempt and eligible to receive the full amount and bypass any federal taxes.
Life insurance is a low-cost way to provide a large gift. You can name us as a primary or contingent beneficiary. If you name us as contingent beneficiary, we will only benefit if your primary beneficiary predeceases you.
Commercial annuities carry an income tax burden, making your named beneficiary responsible for paying the income tax due on the growth of your annuity. The tax burden makes these assets a popular choice to leave to Viterbo because we, as the recipient, can eliminate the tax bill on the portion we received.
How to Name Us as a Beneficiary
- Contact your retirement plan administrator, insurance company, bank, or financial institution for a change-of-beneficiary form.
- Decide what percentage (1-100) you would like us to receive and name Viterbo, along with the percentage you chose, on the beneficiary form.
- Return the form to your plan administrator, insurance company, bank, or financial institution.