CHARITABLE IRA ROLLOVERS
Qualified Charitable Distributions (QCD), often called Charitable IRA Rollovers, were made a permanent part of the tax code in 2015. Donors age 70 ½ and older can make tax-free gifts to the Friends of Williamsburg Library Foundation directly from their IRAs up to $100,000 each year. These gifts count toward Required Minimum Distributions (RMDs) and are available to qualified donors, including those who do not itemize deductions. For those who do not need additional income from their IRAs, these gifts can be used to satisfy the RMDs without adding to their taxable income.
HERE’S HOW IT WORKS
- Donors must be age 70 ½ or older at the time the gift is made.
- The gift can only be made from a traditional IRA or Roth IRA (all other retirement plans such as 401(k), 403(b), Keough, SEPs, and pension plans do not qualify).
- Distributions must be made directly from the IRA administrator and made payable only to a public charity such as the Friends of Williamsburg Regional Library Foundation (gifts to private foundations or donor advised funds do not qualify).
- Distributions must be outright gifts for which the donor receives no goods or services or other benefits. Ineligible benefits include dinners, parking passes, and auctions.
- Each donor may give up to $100,000 in a calendar year to all charitable organizations combined. For couples who have separate IRAs, each spouse may gift up to $100,000 each year.
- Donors do not pay Federal income tax on these Qualified Charitable Distributions (QCD) (Virginia residents also receive the same tax benefits, however some states may treat these distributions like withdrawals for state tax purposes. Please consult with your tax advisor if you are a resident of another state).
- Donors do not claim a charitable deduction for these gifts.
- These charitable distributions can be used to satisfy annual Required Minimum Distributions (RMDs).
- Charitable distributions can be made in cumulative amounts up to $100,000 at any time during the year, but checks must be postmarked no later than December 31.
How To Make Charitable IRA Gifts
Charitable IRA Gifts are easy to make. Call your IRA administrator for specific procedures. Request an IRA Charitable Rollover check made payable to the Friends of Williamsburg Regional Library Foundation. The Foundation’s Federal I.D. number is 54-639135. For written instructions, you may wish to download our sample letter to IRA administrators. Checks should be sent to:
Friends of Williamsburg Regional Library Foundation
7770 Croaker Road
Williamsburg, VA 23188
Please let us know if an IRA check is coming and your desired designation(s) to ensure that your gift is designated properly. Please contact Benjamin Goldberg in the Development Office at 757.259.4042 or send a note to the address above.