WHAT IS A CHARITABLE IRA ROLLOVER?
The charitable IRA rollover, or qualified charitable distribution (QCD), is a special provision allowing certain donors to exclude from taxable income – and count toward their required minimum distribution – certain transfers of Individual Retirement Account (IRA) assets that are made directly to public charities, including the Radford University Foundation, Inc.
HOW DOES THIS HELP ME?
A charitable IRA rollover makes it easier to use IRA assets, during lifetime, to make charitable gifts, including annual pledges.
WHAT WILL THE RULES BE FOR THE IRA CHARITABLE IRA ROLLOVER?
A gift that qualifies, technically termed a “qualified charitable distribution,” must be:
- Made by a donor age 70 1/2 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.
- Transferred from a traditional or Roth IRA directly to a permissible public charity, such as the Radford University Foundation Inc.
- 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.
HOW TO GIVE FROM AN IRA:
- Contact your IRA Custodian.
- Sign application to give amount or percentage to Radford University Foundation, Inc.
- IRA Custodian makes transfer.
- If for a specific purpose, contact Tom Lillard, or a development officer in University Advancement.
- Rollover your qualified Retirement Plan to IRA, then to QCD.
WHAT IS THE TIMELINE TO COMPLETE THIS?
- The charitable rollover must be completed by December 31 of the rollover year.
- This is consistent with the requirement to take the RMD during the calendar year.
- Because some IRA Custodians can take up to two to three weeks to process the rollover, it is important to start an IRA rollover by the first week of December.
IS THERE A LIMIT ON THE AMOUNT THAT CAN BE GIVEN?
Yes, there is a limit. An individual taxpayer's total charitable IRA rollover gifts cannot exceed $100,000 per tax year. If both husband and wife have substantial IRA accounts, then up to $200,000 per year may qualify for IRA rollovers.
WHAT ABOUT THE REQUIRED MINIMUM DISTRIBUTION?
If you have not already taken your required minimum distribution in a given year, a qualifying rollover gift can count toward satisfying this requirement.
IS AN INCOME TAX DEDUCTION ALSO AVAILABLE?
No. The gift would be excluded from income, so providing a deduction in addition to that exclusion would create an inappropriate double tax benefit.
WHY ARE ROTH IRAS INCLUDED? AREN'T WITHDRAWALS FROM A ROTH IRA TAX-FREE?
Withdrawals from a Roth IRA may be tax-free only if the account has been open for longer than five years or if certain other conditions apply. Otherwise, withdrawals are taxed as if they came from a traditional IRA. Therefore, certain Roth IRAs could benefit from a charitable IRA rollover.
CAN OTHER RETIREMENT PLANS, SUCH AS 401(K) AND 403(B) ACCOUNTS, BE USED?
No. However, it may be possible to make a tax-free transfer from such other accounts to an IRA, from which a charitable rollover can then be made.
CAN A GIFT BE MADE TO ANY CHARITY?
No. Excluded are:
- Donor advised funds
- Supporting organizations
- Private foundations
WHO CAN BENEFIT FROM USING THE CHARITABLE IRA ROLLOVER TO MAKE A GIFT?
- Persons with significant assets in an IRA
- Persons making gifts that are large, relative to their income. (Because a charitable rollover is not included in taxable income, it does not count against the usual percentage limitations on using charitable deductions.)
- Persons having so few deductions that they choose not to itemize
CAN A ROLLOVER GIFT BE USED TO FUND A CHARITABLE REMAINDER TRUST OR CHARITABLE GIFT ANNUITY?
No. The donor can receive no benefits in return for the gift. This includes life income plan payments.
CAN A ROLLOVER GIFT BE USED TO MAINTAIN OR IMPROVE A DONOR'S STANDINGS?
No. While a charitable IRA rollover gift can be made to Athletics, the donor is not permitted to receive any priorities or other privileges in exchange for the gift. Otherwise, the gift will not be a qualified charitable IRA rollover.
ARE THERE ANY BENEFITS THAT A DONOR CAN RECEIVE?
The only permissible benefits from a charitable IRA rollover gift are those that would not reduce the tax deduction for which the donor would have otherwise qualified. At Radford University, a charitable IRA rollover gift is allowed to count toward naming opportunities.
WHAT IF A WITHDRAWAL DOES NOT MEET THE REQUIREMENTS OF A CHARITABLE IRA ROLLOVER?
It simply will be included in taxable income as other IRA withdrawals currently are.
IS THE CHARITABLE IRA ROLLOVER RIGHT FOR EVERYONE?
While this is a great option, other types of gifts may provide donors with more tax benefits. As with any gift planning question, donors should consult their tax professionals for specific advice.
CAN I STILL MAKE A GIFT WITH AN IRA BENEFICIARY DESIGNATION?
Absolutely! Whether or not you choose to make a charitable IRA rollover gift, you can still designate the Radford University Foundation Inc. as a beneficiary to receive IRA assets after your lifetime. The lifetime charitable IRA rollover is simply another option for donors who would like to see their philanthropy at work now.
Contact Tom Lillard, firstname.lastname@example.org, or (540) 831-6172. Please consult your personal advisors who must assume final responsibility in advising you whether or not this gift is appropriate in your own unique circumstance.
WAYS TO GIVE
Endowed and Annual Scholarships
Establishing an endowment or an annual scholarship is an act of generosity that allows Radford University to attract and retain the very best students, regardless of financial need. More than 60 percent of our students receive some form of financial aid, and scholarship support is an essential part of this assistance. Scholarships can be based upon financial need and/or merit. You may establish an endowment or an annual scholarship to honor a loved one or memorialize an important person in your life. Regardless of the type of scholarship you decide best meets your goals, a member of the Advancement team will work with you to write a Gift Agreement that ensures your scholarship is awarded according to your wishes while meeting the needs of our students.
For more information about creating an endowment, contact the Office of University Advancement at 540-831-5407, or download the Endowed and Annual Scholarship Guide.
Every gift, no matter the size, makes a difference in the lives of Radford University students.
Did you know your gift to Radford University can be doubled, even tripled, through employer matching gift programs? Don’t miss this chance to increase the impact you can make with an employer matched gift. To find out if your company matches gifts and how to request a match, please visit the matching gifts page or stop by your personnel office.
Planned gifts, such as bequests or charitable trusts, can be an advantageous way to provide for a future gift to make a difference for students and programs at Radford University. You can take care of yourself and take care of Radford.
WHAT IS "PLANNED GIVING?"
Planned giving involves providing for a future gift to Radford University through your financial and estate plans. Our University welcomes gifts made through different planned giving arrangements. These arrangements can:
- Provide for you or your loved ones
- Entitle you to charitable income and/or gift or estate tax deductions
- Enable you to leave a legacy for Radford University
You can explore different types of planned gifts and different assets to give.
A charitable IRA rollover makes it easier to use IRA assets, during your lifetime, to make charitable gifts, including annual pledges.
Radford University’s crowdfunding platform was created to help Highlanders raise money to bring ideas to life and help existing programs grow and flourish. This platform functions because we Highlanders do our part to help these projects reach their goals. This is truly the collective power of giving at work!
All donations go directly to the student group and program accounts managed by the Radford University Foundation. No fees are removed from the donation amount.
Learn more about our crowdfunding initiatives.
Radford University Telephone Outreach Program
We are the student-led voice of the Radford Fund!
We are committed to cultivating meaningful relationships with our Highlander family, including alumni, parents and friends of the University. We work to enhance the partnership between our Highlander family and Radford University in support of the University, its programs and its students through the Radford Fund. The Radford Fund provides vital, current-use dollars that make a difference today for the futures and lives of our students and solidifies the timeless significance of our institution.