Tax-Free Gift of IRA Assets – Due to Expire December 31, 2007

The IRA charitable rollover provides a tax advantage for retirement savers who are 70 1/2 years or older.  If you transfer a contribution of up to $100,000 from your IRA directly to a qualified public charity, such as the Jewish Community Endowment Fund or the Jewish Community Federation, you can count the full amount toward your required minimum IRA distribution this year and avoid the income tax on the amount contributed, as well as avoid potential future estate taxes.  In addition, the transfer is not subject to the charitable deduction limit of 50% of your adjusted gross income. 

To Qualify as an IRA Charitable Rollover

• You must be 70 1/2 years or older at the time of the gift.
• You may distribute up to $100,000 to a qualified public charity.  A husband and wife, who each have a separate IRA, may contribute $100,000 each for a combined charitable distribution of $200,000.
• Transfers must be made directly from your IRA administrator to the charity.
• The gift amount will be excluded from your taxable gross income (provided the distribution would be otherwise taxable).
• The IRA gift will be counted toward the minimum distribution requirements for IRAs.
• Distributions can only be made from traditional IRAs or Roth IRAs.

Important Limitations

• Transfers may not be made from 403(b), 401(k), pension, or other retirement plans.
• Contributions can be made to eligible public charities, but not to donor-advised funds, supporting organizations, private non-operating foundations, charitable lead trusts, and life income plans, such as charitable remainder trusts, pooled income funds and charitable gift annuities.

An IRA Charitable Contribution to the JCEF or the JCF – Programs to Help You Achieve Your Philanthropic Goals

• Jewish Community Endowment Fund
  • Unrestricted Endowment Fund which is a major resource to help meet emergency needs, provide seed funding for new initiatives, and support the search for creative, thoughtful solutions to communal problems in the Jewish and general communities.
  • Establish a special, named fund in your field of interest.  
  • Support an existing community fund that that meets your goals, including scholarship funds for the vulnerable.  (Learn more about our initiatives and scholarships.)
• Jewish Community Federation Annual Campaign

We encourage you to discuss the IRA charitable rollover with your financial advisor or tax preparer to determine whether this opportunity would meet both your philanthropic and financial planning goals. 

For more information contact:

Rita Choit Adler at 415.512.6287 or email ritaa@sfjcf.org
Jennifer Gorovitz at 415.512.6215 or email jenniferg@sfjcf.org
Lisa Gurwitch at 415.512.6221 or email lisag@sfjcf.org

Please note: This information is not intended to provide legal advice, and merely conveys factual information about a law. It is not intended to be applied to an individual’s specific circumstances.  This information should not be relied upon or used by any taxpayer for the purpose of avoiding penalties that may be imposed by the Internal Revenue Service.