Great Year End Ways to Give

Charitable IRA Rollover Gifts Permanently Extended

 

You may be looking for a way to make a big difference to help further NFCR’s mission. If you are 70½ or older you may also be interested in a way to lower the income and taxes from your IRA withdrawals. A newly permanent charitable IRA rollover law (H.R. 2029: Protecting Americans from Tax Hikes Act of 2015) allows IRA owners who are 70 ½ or older to make direct gifts of up to $100,000 to charities from their IRA plan account!

How Does a Charitable IRA Rollover Work?

Contact your IRA plan administrator
1

Contact your IRA plan administrator to make a gift directly from your IRA to NFCR. Please note that this applies to IRA plans only. Gifts from 401(k), 403(b), SEP and other plans do not qualify unless you first roll those funds into an IRA. You would then be able to direct the IRA administrator to transfer funds from your IRA directly to the National Foundation for Cancer Research.

Download a sample Charitable IRA Rollover Gift Transfer Request Letter
2

Click here to download a sample Charitable IRA Rollover Gift Transfer Request Letter to use in contacting your administrator.

transfer the amount of funding you request to NFCR to help continue critical cancer research
3

Your plan administrator will directly transfer the amount of funding you request to NFCR to help continue critical cancer research.

Benefits of a Charitable IRA Rollover

Avoid taxes

on transfers of up to $100,000 from your IRA to NFCR

Satisfy

part or all of your required minimum distribution (RMD) for the year

Reduce

your taxable income, even if you do not itemize deductions

Make a gift

that is not subject to the 50% deduction limits on charitable gifts

Help

further the work and mission of NFCR’s cutting-edge cancer research

 

Example:

Bob, age 75, is required to take mandatory distributions from his IRA of $10,000 this year. He pays tax at a 28% rate, meaning he will keep only $7,200. He makes many gifts to charity each year, including to NFCR, but because he does not itemize deductions on his income tax return, he receives no tax benefit from his generosity. Bob could instead have his IRA custodian transfer part, or all, of his $10,000 required distribution to NFCR. Not only does he increase his giving significantly, but he avoids the tax he would otherwise pay on the withdrawal!

Gifts of Appreciated Securities

If you own publicly-traded, long-term appreciated stocks, bonds or mutual funds, you can donate them to the National Foundation for Cancer Research prior to year-end. You may benefit from an income tax charitable deduction for the value of the security on the day we receive it, and you may avoid any capital gains tax that would have been due had you sold the stock. The tax savings can be much larger than from a gift of cash!

If you would like to make a gift of appreciated securities to the National Foundation for Cancer Research, please provide the following information to your broker:

Frequently Asked Questions

Charitable IRA Rollover Questions and Answers


H.R. 2029, the Protecting Americans from Tax Hikes Act of 2015, has permanently extended the IRA Charitable Rollover. Originally passed in 2006 as part of the Pension Protection Act, the IRA Charitable Rollover allows individuals age 70½ and older to make direct transfers totaling up to $100,000 per year to 501(c)(3) charities, without having to count the transfers as income for federal income tax purposes.
  • Who qualifies?

    Individuals who are age 70½ or older at the time of the contribution (you have to wait until your actual 70 ½ birthday to make the transfer).

  • How much can I transfer?

    Up to $100,000 per year per person. The provision no longer has an expiration date!

  • To what charities can I make gifts?

    You may make gifts to tax exempt organizations that are classified as 501(c)(3) charities, including the National Foundation for Cancer Research.

  • Can I use the IRA Charitable Rollover to fund life-income gifts (charitable gift annuities, charitable remainder trusts, or pooled income funds), donor advised funds or supporting organizations?

    No, unfortunately these options are not eligible at this time.

  • From which accounts can I make transfers?

    Transfers must come from your IRAs directly to the National Foundation for Cancer Research. If you have retirement assets in a 401(k), 403(b) or other retirement plans, you must first roll those funds into an IRA, and then you can direct the IRA administrator to transfer the funds from the IRA directly to the National Foundation for Cancer Research.

  • Does this transfer qualify toward my required minimum distribution?

    Once you reach age 70½, you are required to take minimum distributions from your retirement plans, including IRA plans, each year according to a federal formula. Charitable IRA Rollovers from your IRA may count toward your required minimum distribution for the year.

  • How do I know if an IRA Charitable Rollover is right for me?

    You are at least age 70½, and:

    • You do not need the additional income necessitated by your required minimum distribution; OR
    • Your charitable gifts already equal 50% of your adjusted gross income, so you do not benefit from an income tax charitable deduction for additional gifts; OR
    • You do not itemize deductions; OR
    • You are subject to income phase-outs on your income tax deductions.
  • What is the procedure to execute a Charitable IRA Rollover?

    Click here for a sample letter you can send to your plan administrator to initiate a rollover. Make sure that you contact us when you direct the rollover so we can look for the check from your IRA administrator. Elaine Currie at 1-800-321-CURE (2873) if you wish for your gift to be used for a specific purpose or if you need help with how to request a transfer from your IRA administrator.

  • What are the potential tax implications to me?

    • Federal – You may not need to recognize the transfer to the National Foundation for Cancer Research as income, provided it goes directly from the IRA administrator to us. However, you would not be entitled to an income tax charitable deduction for your gift.
    • State – Each state has different laws, so you will need to consult with your own advisors. Some states have a state income tax and will include this transfer as income. Within those states, some will allow for a state income tax charitable deduction and others will not. Other states base their state income tax on the federal income or federal tax paid. Still other states have no income tax at all.
  • Can my spouse also make an IRA Charitable Rollover, even if we are married and file jointly?

    Yes, every individual 70 ½ or older can use the Charitable IRA Rollover for up to $100,000 each year.

Please contact Elaine Currie at 1-800-321-CURE (2873) if you wish for your gift to be used for a specific purpose or if you need help with how to request a transfer from your IRA administrator.