Charitable IRA Rollover
The Protecting Americans from Tax Hikes (PATH) Act of 2015 made permanent the Charitable IRA Rollover provision of the Pension Protection Act of 2006. A taxpayer age 70 ½ or older may roll over — directly transfer — up to $100,000 annually from his or her individual retirement account (IRA) for a qualified charitable distribution. The amount directly transferred will be excluded from the income of the taxpayer for federal income tax purposes. The amount directly transferred does not generate a charitable income tax deduction, but it does count toward the taxpayer’s minimum required distribution.
Through strategic use of the IRA charitable rollover:
• Avoid a higher tax bracket that might otherwise result from taking a required minimum distribution into income
• Complete a pledge or create a fund
• Advance a bequest already planned for the University of Maine Foundation and receive a tax benefit
• Make a significant lifetime gift and enjoy the impact
• Support favorite charities with annual gifts
Please contact the Foundation if you need assistance with sample transmittal letters, or if you would like to discuss making the Foundation a beneficiary of any portion of your retirement funds.