Make Tax-Free IRA-Charity Distributions Now if You Are Age 70½ or Older
American Friends of The Hebrew University (AFHU) is pleased to advise that the IRA-Charity Rollover is now a permanent provision in U.S. tax law. Commencing January 1, 2016, you may make a charitable gift to AFHU in support of The Hebrew University of Jerusalem directly from your IRA at anytime during the year subject to qualifications set out below. This tax-free contribution can help to advance cutting-edge research and higher education at Israel’s leading university.
Financial Advantages to you:
- The IRA Charitable Rollover permits you to make donations directly to AFHU from your IRA without counting the distribution as part of your adjusted gross income (AGI) and without paying taxes on the amounts donated.
- You will not need to recognize the distribution as income for federal income tax purposes.
- The distribution can count towards your minimum required IRA distribution for every year beginning in 2016.
- You can apply the distributions to pay charitable pledges or to make any outright gifts, whether unrestricted or designated for specific Hebrew University priorities.
- You must be 70½ or older.
- Your total combined IRA-Charity Rollover contributions cannot exceed $100,000 in any calendar year.
- Charitable contributions from an IRA must go directly to a charitable organization such as AFHU and not to a donor advised fund or private foundation.
- Distributions can only be made from traditional IRA accounts. To use funds in 403(b) plans, 401(k) plans, pension plans, and other retirement plans, they must first be rolled over tax-free to an IRA.
- Distributions must be made directly from the IRA trustee or administrator payable to AFHU.
- Distributions cannot be used to establish charitable gift annuities or to fund charitable remainder trusts.
- The distributions are made from the IRA tax-free. There are no corresponding income tax charitable deductions for these amounts.
To learn more and to make your charitable contribution, please contact AFHU National Executive Director, Beth McCoy at 212-607-8555 or firstname.lastname@example.org.
Thank you for your commitment to The Hebrew University of Jerusalem and to AFHU’s enduring mission.