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IRA Charitable Rollover

Money 2696228 1920

Click here to download IRA Form 2022

An Individual Retirement Account (IRA) is a wonderful way to build a nest egg for your retirement. It's also a great vehicle to realize tax savings, even if you don't itemize your deductions, through making an IRA charitable rollover.


You can take advantage of the tax savings from an IRA charitable rollover or qualified charitable distribution if you are at least 70 1/2 years old and have an IRA account.

Why Give from an IRA?

Once you reach age 72, you have to take out a required minimum distribution (RMD) from your IRA each year. You can take out more if you want, but you have to at least take the required minimum distribution by December 31 each year. These distributions are considered taxable income.

For those who don't really need the money in their IRA for personal use, you are faced with a tricky situation. If you withdraw the minimum distribution, it will increase your taxable income and perhaps even bump you to a higher tax bracket. Why be penalized for an income that you don't really need?

Instead, if you transfer your distribution directly to a 501 (c)(3) not-for-profit organization like St. Paul's, it will be considered a donation instead of income and will be tax-free.

There are many wonderful ways your donation can help the residents at St. Paul's live a more meaningful life.

Gift Limit

Individuals who have reached age 70½ can donate up to $100,000 to charitable
organizations like St. Paul's from their IRA without counting it as taxable income. For couples with separate IRA accounts, they can each gift up to $100,000.

However if you are still making contributions to your IRA after the age of 70 1/2, that will reduce the amount of the qualified charitable distributions dollar-for-dollar that you are allowed to claim on your taxes as a charitable deduction.

For example: Alice contributed $10,000 to her IRA at the age of 72. She also made a $20,000 qualified charitable distribution to St. Paul's. Alice can only claim the $10,000 as a charitable deduction on her taxes.

How to Make an IRA Charitable Rollover

Just ask your IRA administrator to send a check directly to St. Paul's from your IRA account. Please note: if you withdraw the money yourself, deposit it in your checking account and then write a check to St. Paul's, you will be liable for income tax on that money. To be tax free, the donation must come directly from your IRA administrator to St. Paul's.

To get started, use the document below to send your request to your IRA administrator. We also encourage you to complete the second page to let St. Paul's know about your coming gift. At times we receive IRA charitable rollovers from plan administrators without the donor's name included. We want to be able to thank and recognize you for your generous gift!

For more information, please contact Director of Planned & Major Giving Dawn Hartman at 724-589-4611.