IRA Charitable Rollover

What is an IRA Charitable Rollover?

There are lots of tax-effective ways to make a gift to the Delaware Art Museum. If you’re 70½ or older, you may want to consider an IRA charitable rollover, which could lower the income taxes from your required annual IRA withdrawals.

Recap of Charitable IRA Rollover Rules

  • Donor must be at least 70 ½ years of age when the gift is made
  • Transfer must be made directly from the IRA administrator to a qualified charity (like the Delaware Art Museum)
  • The maximum allowed gift per individual is $100,000 per year
  • Must be outright gifts
  • This gift opportunity only applies to IRAs
  • The charitable IRA distribution can be used to pay a pledge

Benefits of Charitable IRA Rollover

  • May make a significant gift without using cash or other assets
  • The rollover amount is a tax-exempt distribution and not subject to income tax
  • IRA rollover can be used to meet all or part of required minimum distribution (RMD)
  • Gift not subject to charitable gift limitations
  • Still benefit from reduced taxes if you do not itemize

Steps for Directing a Charitable IRA Rollover to the Delaware Art Museum

  • Contact your IRA plan administrator for their specific transmittal form or use our sample direction letter to request a gift transfer from your IRA to the Delaware Art Museum.
  • For 2018 credit: direct your plan administrator to make the transfer on or before December 31, 2018. Postmark must be no later than December 31, 2018.
  • Inform the Museum of the designation of your gift by noting it at the bottom of your direction letter or by contacting Molly Giordano at mgiordano@delart.org.

Questions? Contact Molly Giordano, Director of Development & External Affairs, at mgiordano@delart.org or 302-351-8515.