Tax-free gifts from IRAs are here to stay!
The Protecting Americans from Tax Hikes Act of 2015 makes permanent the IRA Charitable Rollover. This tax code provision allows taxpayers age 70 ½ or older to transfer up to $100,000 annually from their IRA accounts directly to Berkeley without incurring federal or California state income tax on the withdrawal. For non-Californians, please confirm the tax reporting status in your state.
With this exciting news, keep a few key requirements in mind:
i. The IRA account holder must be at least age 70½ at the time the distribution is made to Berkeley
ii. Distribution must be made directly from the IRA custodian to Berkeley
iii. Gift cannot exceed $100,000 per donor per year
iv. Goods or services cannot be received by the donor in exchange for the IRA gift
v. Pledge commitments can be paid with an IRA Charitable Rollover
vi. Please consider IRA gifts over $1000, and you will help us lower administrative processing costs
To help you take advantage of this opportunity, click here to download a sample letter of instruction you can send to your IRA custodian. Thank you, and Go Bears!