Charitable IRA Rollover

Black Bear
You can ROLL OVER a portion of your IRA to benefit the University of Maine and avoid taxes!

LAW CHANGE:

As a part of the CARES Act, Congress has temporarily eliminated most required minimum distributions from retirement plans during 2020. Check with your financial advisor to see how this might affect you. 

Please note: You may have already read about the “Setting Every Community Up for Retirement Enhancement” Act, also known as the SECURE Act. The SECURE Act, which went into effect on January 1, 2020, includes many changes to the rules governing retirement plan, including, for some, the date at which required minimum distributes must begin.

Qualified Charitable Distributions

Regardless of whether you are now required to make a minimum distribution, a qualified charitable distribution can be a great way to make tax-advantageous contributions.

If you are 70 ½ or older, you may directly transfer up to $100,000 annually from your individual retirement account (IRA) to the University of Maine Foundation as a qualified charitable distribution. The amount directly transferred will be excluded from your income for federal income tax purposes, although it will not also generate a charitable income tax deduction.  If you are required to take a minimum distribution, a qualified charitable distribution will count toward this minimum required distribution.

 

Through strategic use of the IRA qualified charitable distribution, you may be able to:

  • 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

 

To learn more about qualified charitable distributions from an IRA, please open this PDF.

 

Please contact the planned giving officers at the University of Maine Foundation if we can help in any way.  We can be reached Monday – Friday from 8:00 AM to 5:00 PM at 207-581-5100 or 1-800-982.8503 or by email via email at umainefoundation@maine.edu.

 

NOTE:  if you would like to learn more about making the Foundation a beneficiary of any portion of your retirement funds, get information here.