IRA Charitable Rollover
You may be able to arrange a direct transfer from your Individual Retirement Account (IRA) to Environment Montana Research and Policy Center without having to count the amount as income for federal tax purposes. This type of gift from your IRA assets during your lifetime is commonly called an IRA charitable rollover, but you may also see it referred to as a qualified charitable distribution (QCD).
- You must be 70 ½ or older at the time the gift is made
- Transfers must be made directly from a traditional IRA account (or in some circumstances a Roth IRA account) to a qualified charitable organization like Environment Montana Research and Policy Center
- The distributions must be outright charitable contributions; they cannot be used to fund life-income gifts such as charitable gift annuities or charitable remainder trusts
IRA charitable rollovers can in many circumstances be used to satisfy part or all of your required minimum distribution*, can total up to $100,000 per year to qualified charities, and may be excluded from gross income for federal income tax purposes.
The distributions are not tax-deductible – because a deduction, combined with the exclusion from income, would result in a double tax benefit. But since many taxpayers are no longer itemizing their deductions, the exclusion of the IRA charitable rollover amount from taxable income can provide a way for seniors to receive a tangible tax benefit from a charitable contribution even while taking the standard deduction.
For an IRA charitable rollover to count toward your required minimum distribution for the current year, Environment Montana Research and Policy Center must receive your gift by Dec. 31st. Please instruct your IRA administrator to name you as the donor on the transfer.
The IRS provides additional useful information on IRA charitable rollovers here. Environment Montana Research and Policy Center cannot provide tax or legal advice. Be sure to check with your financial advisor to make sure this type of gift the best choice for you.
* Your required minimum distribution (RMD) is the minimum amount you must withdraw from your traditional IRA each year, starting from age 70 ½.
To find out more, including our tax identification number and other resources regarding planned giving, please email our Planned Giving Coordinator using the form below, or call 1-800-841-7299. Donations to Environment Montana Research and Policy Center, a project of Environment America Research and Policy Center, are tax-deductible in many circumstances. Please seek the guidance of your attorney or financial advisor when making changes to your estate plan.