The IRA Charitable Rollover: The Law of the Land

IRA Charitable Rollover: The Law of the Land!

For those of you with IRAs who are at least age 70 1/2, an opportunity under federal legislation allows you to redirect your Minimum Required Distribution (MRD) and up to $100,000 of your IRA to charity each year. It is a great opportunity to fulfill your annual contribution, make a much-needed extra donation, or support the Campus for Tomorrow capital campaign.

By directing your MRD to charity, you avoid income tax on those dollars—although this transfer to charity is not tax deductible.

Here’s How It Works:

Pretend you’re required to withdraw $1,200 from your IRA by Dec. 31. First, you’d simply contact your IRA account company and explain that you want to redirect your MRD to Saint Mary.

Caution—a lot of banks and agencies are not aware of the IRA Charitable Rollover Law.

Next, your company will send you paperwork. Make sure that the check from your IRA account is made payable to:

University of Saint Mary
c/o Alumni and Development Office
4100 S. 4th Street
Leavenworth, KS 66048

If the check is payable to you, it is taxable income.

The forms will ask if you want to withhold federal and/or state taxes—since you’re redirecting your MRD as a donation to Saint Mary, you do not need to have income taxes withheld (meaning 100% of your MRD can go directly to Saint Mary).

One more note — while reviewing your IRA, consider making Saint Mary beneficiary of your IRA.

All questions welcome.

Jane Ellen Liebert, C’97
Alumni and Planned Giving Officer
913-758-6126
jane.liebert@stmary.edu

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