The IRA Charitable Rollover is a tax-smart way to support Kansas City PBS and ensure it continues to enrich the lives of our family, friends and neighbors. A gift made from your IRA will never count as income but will always make a difference. Kansas City PBS supporters interested in making an IRA rollover gift are encouraged to consult with their financial advisers. Here are frequently asked questions that can help you evaluate the benefits of making a gift from your IRA:
What is the IRA Charitable Rollover?
The IRA Charitable Rollover allows donors to make “qualified charitable distributions” directly from a retirement plan. Gifts up to $100,000 are excluded from federal income. For couples filing a joint tax return, each spouse can exclude up to $100,000, for a maximum of $200,000 each year.
What is a “qualified charitable distribution”?
- A donor makes a qualified charitable distribution if:
- He or she is at least 70½ years old at the time the distribution is made.
- The distribution is made from either a traditional or Roth IRA.
- The distribution is made to a qualified charitable organization, like Kansas City PBS.
- The distribution to Kansas City PBS is made directly by the retirement plan administrator.
Will this distribution (also referred to as an IRA rollover gift) count toward my required minimum distribution (RMD)?
Yes. The IRA rollover gift will count toward a donor’s yearly RMD. The Secure Act, which was signed into law effective January 1, 2020, pushes back the age at which a retirement plan participant needs to take a RMD from 70 1/2 to 72 years old, for those who are not 70 ½ by the end of 2019. If you have questions about your eligibility, please contact your financial advisor.
What type of donors may benefit from an IRA rollover gift?
- Donors who do not itemize or claim a deduction for their charitable contributions.
- Donors who itemize but are unable to fully deduct their current year contributions.
- Donors who normally use withdrawn funds to make charitable gifts that are not fully deductible.
- Donors who are bumped into a higher tax bracket and phased out of certain deductions and credits once their annual distributions are reported as income.
Can I claim a charitable deduction for an IRA rollover gift?
No. Donors receive a financial benefit by being allowed to exclude up to $100,000 of the charitable distribution from income on the federal return. To allow a charitable deduction would result in a double benefit.
Are there any restrictions on the use of an IRA rollover gift?
Yes. Although a charitable deduction is not allowed, the entire distribution to Kansas City PBS must meet the same requirements as a fully deductible charitable contribution. As such, no benefits can be received in exchange for the rollover gift. For example, the gift cannot be used to purchase tickets to special events or to fund a life-income arrangement such as a charitable gift annuity.
What is the process for making an IRA rollover gift?
The process is simple. A donor will need to contact his or her plan administrator and request a “qualified charitable distribution” be made directly to Kansas City PBS. (legal name Public Television 19, Inc.). If the donor first receives the distribution and then makes a gift of the funds, the contribution will not count as a qualified charitable distribution. The donor will have to report the distribution as income. In some cases, the donor may be able to claim a charitable deduction for the amount of the gift.
What is the deadline for making an IRA rollover gift?
Gift must be received by Dec. 31 for donors to enjoy the full benefits in the current tax year.
Make your gift to Kansas City PBS today. To learn more about supporting Kansas City PBS with your IRA, call Steph Shannon, Director of Major Giving at 816-398-4248 or email email@example.com.