IRA Charitable Rollover

Here’s a special way to support Hawaiʻi Public Radio if you are age 70½ or older.

The IRA Charitable Rollover was first enacted as part of the Pension Protection Act of 2006 and permanently extended in the Protecting Americans from Tax Hikes Act of 2015. Now, you can make a charitable gift directly from your Individual Retirement Account (IRA) every year while excluding the amount of that gift from your adjusted gross income (AGI).

Advantages to you:

·         You can use an often-overlooked asset to make a gift to Hawaiʻi Public Radio

·         The IRA Charitable Rollover permits you to make donations directly to charitable organizations such as Hawaiʻi Public Radio from your IRA without counting the distribution as part of your AGI and, consequently, without paying taxes on it.

·         You don’t recognize the distribution as income for federal income tax purposes.

·         The distribution counts towards your required minimum distribution (or RMD) for the year.

To qualify:

·         You must be 70-1/2 or older and required to take an annual distribution from your IRA.

·         Your total combined charitable IRA rollover contribution cannot exceed $100,000 in any one year. (Married couples may be able to contribute up to $100,000 each.)

·         Charitable contributions from an IRA must go directly to a public charity that is not a supporting organization. Contributions to donor-advised funds and private foundations, except in narrow circumstances, do not qualify for tax-free IRA rollover contributions.

·         The RMD rules apply to all employer sponsored retirement plans, including profit-sharing plans, 401(k) plans, 403(b) plans, and 457(b) plans. The RMD rules also apply to traditional IRAs and IRA-based plans such as SEPs, SARSEPs, and SIMPLE IRAs.
 
The RMD rules also apply to Roth 401(k) accounts. However, the RMD rules do not apply to Roth IRAs while the owner is alive.

·         You cannot receive any goods or services in return for your charitable IRA rollover contribution in order to qualify for tax-free treatment.

·         You must receive an acknowledgement from Hawaiʻi Public Radio or other charity for each rollover contribution.

We recommend that you seek advice from your financial advisor prior to making a charitable rollover as personal circumstances can have a significant impact on whether charitable rollovers are advantageous. In order to benefit from an IRA contribution, plan to contact your IRA administrator as soon as possible as some administrators may place a deadline on requesting transfers.

Additionally, if you are making a Charitable IRA Rollover contribution, contact your chosen charity to alert them to your donation.

For more information, see this IRS page. To make a Charitable IRA Rollover contribution to Hawaiʻi Public Radio, contact Valerie Yee, vyee@hawaiipublicradio.org or 808-955-8821 (during business hours).