Giving Through Individual Retirement Accounts

If you are over age 70½, you can rollover up to $100,000 from your IRA to Special Olympics Southern California without claiming any increased income or paying any additional tax.

 

Benefits of an IRA Charitable Rollover

* The IRA rollover gift is an easy way to provide for Special Olympics Southern California, while not increasing your taxable income.

* The gift generates neither taxable income nor a tax deduction, so even those who do not itemize their tax returns receive the benefit.

* Because donations from IRAs are excluded from income, donors are able to exceed the traditional 50% itemization limit for their adjusted gross income.

* IRA Charitable Rollovers benefit those whose deductions go down as their income goes up.

 

How does it work?

* Individuals age 70½ and older are required to make annual distributions from their IRAs. The distributions are included in the taxpayers’ adjusted gross income, and taxpayers pay taxes on them. The IRA Charitable Rollover permits taxpayers to make donations directly to charitable organizations from their IRAs without counting them as part of their adjusted gross income and, consequently, without paying taxes on them.

* Only contributions made until December 31, 2009 are eligible for the enhanced tax benefit.

A donor’s total combined charitable IRA rollover contributions cannot exceed $100,000 in any one year.

* Gifts must be made directly from a traditional or Roth IRA to the charity and the organization must be a qualified charity (Special Olympics Southern California is a qualified charity).

 

How to make gifts from your IRA

It's easy to make a gift from your IRA.  Simply write a letter (click here for sample letter) or call your IRA office. After your request has been received and processed, your IRA office will send a check to Special Olympics Southern California on your behalf. 

 

Please be sure to contact a professional advisor if you are considering a gift under this law.