Charitable IRA Rollover

A new law signed December 2015 brings back the charitable IRA rollover for 2015 and into the future. This provision allows people who are at least 70 ½ to transfer up to $100,000 per year directly from an IRA to charities like the Garden State Philharmonic, without first having to report it as income.

Who will benefit from the Charitable IRA Rollover?

Basically:
1. People 70 ½ and older
2. Who have a traditional IRA
3. Who want to make gifts to organizations like the Garden State Philharmonic

More specifically:
A. Those who are required to take money out of their IRA, but don’t need the income and don’t like the idea of being taxed on it.
B. People who might have thought about withdrawing IRA money in the past for charitable gifts, but can’t use a regular charitable deduction, because of the 50% of Adjusted Gross Income (AGI) ceiling on charitable gifts.
C. People who are watching their AGI because it has other negative tax implications, aside from its impact on the charitable deduction.
D. People who don’t want to increase their AGI with an IRA distribution because it affects the taxability of their Social Security income.
E. Alternately, this type of giving may work for those who don’t itemize deductions at all because the tax benefits of lowering your AGI don’t depend upon the charitable deduction

The gift must come directly from your provider to the charity. For your convenience, two sample letters are being provided here (See Letter1 SAMPLE text and Letter2 SAMPLE text) to assist those interested in orchestrating such gifts to the Garden State Philharmonic. One is a letter you would send to your IRA plan administrator and the other you would send to the Garden State Philharmonic as the benefiting charity. Administrators sometimes send your gift to the charity without identifying you as the donor. For this reason, it’s a good idea to let the Garden State Philharmonic know your gift is on the way, so proper credit can be given to you and an appropriate receipt sent once your gift has been received.

The Garden State Philharmonic Symphony Society, D.B.A. Garden State Philharmonic (GSP), does not provide specific tax or legal advice, but supplies this information to encourage thoughtful charitable options for our donors. The Garden State Philharmonic recommends you consult your own advisor in all matters. If you have questions about the Charitable IRA Rollover, contact the Garden State Philharmonic at (732) 255-0460 during regular office hours, or e-mail development@gardenstatephilharmonic.org.