IRA Charitable Rollover

The new tax reform act may limit the benefit of income tax charitable deductions for some. However, donors can still receive tax benefits using the IRA Charitable Rollover. The IRA charitable rollover is now permanent and is a terrific way to make a tax-free gift to Buckingham Browne & Nichols School using your qualified retirement plan. This gift may also satisfy your required minimum distribution (RMD).

How Do I Qualify?

  • You must be 70 ½ years old or older at the time of the gift.
  • Gifts must go directly from your IRA to BB&N.
  • Gifts must come from an IRA account.
  • Gifts cannot exceed $100,000 per donor.

Benefits of an IRA Charitable Rollover:

  • Gifts can satisfy your RMD without increasing your income taxes.
  • You will not pay taxes on your IRA withdrawal when gifted to BB&N.
  • You may direct your gift to a BB&N program of your choice.
  • It is a wonderful way to create an immediate impact in the lives of students and their families.

Our Office of Gift Planning can provide you with a letter to send to your IRA administrator to make an IRA charitable rollover. If you are interested in making such a gift or would like more information, please contact:

Janet Rosen
Director of Stewardship and Advancement Communications

Important Note: Many large IRA administrators now offer IRA owners the option to write checks off their IRA account. However, the date of gift is not established when you put the check in the mail. Rather, the Qualified Charitable Distribution (QCD) rules require action by the IRA administrator, which means the date of gift is established when the IRA administrator transfers funds after the charity deposits the check. If you mail an IRA check in late December and the charity doesn’t cash it until early January, two problems occur:

  1. You will have to declare your QCD on the following year's tax return.
  2. If you miss fulfilling all of your required minimum distribution for the year because of the delay, you will have to pay a 50% penalty tax on the amount of under distribution.

We encourage you to make your charitable IRA rollover gifts several weeks before the end of the year if writing your own check.