Your IRA Gift Opportunity for 2013
Congress has extended the opportunity to make tax-free gifts from Individual Retirement Accounts (IRAs) through December 31, 2013 under the American Taxpayer Relief Act of 2012.
This important legislative provision permits individuals over age 70 1/2 to arrange direct gifts from their IRAs to qualified charitable organizations, such as Northwestern University, up to a maximum amount of $100,000 per year. Although the retroactive opportunity for 2012 has now expired, the opportunity to make gifts to Northwestern through your IRA is still available for 2013.
- Donors must be age 70 1/2 or older on the date of the distribution.
- The maximum distribution is $100,000 per person. It is possible that spouses can gift $200,000.
- Distributions can be made ONLY from a traditional or Roth IRA. Other retirement plans, such as pensions, 401(k) plans and others are not eligible.
- The distribution must come directly to Northwestern from the IRA administrator.
- This gift qualifies toward your annual minimum required distribution.
- The charitable rollover distribution can be used to pay down a pledge or as an outright cash gift. It cannot be used for quid pro quo arrangements or to establish life income vehicles such as annuities or trusts.
- There is no charitable deduction but the amount sent to Northwestern is excluded from your adjusted gross income.
Keep in mind that the impact of taking an IRA distribution can vary from person to person; therefore, we urge you to discuss your plans with your financial advisor. To make this process easier for you, we have prepared two forms that you can use to properly communicate your wishes to your IRA Administrator and to Northwestern University. By completing these forms, you ensure proper receipting of your gift. You may download the links below.
To Notify Northwestern of Your Charitable Distribution Directly from Your IRA
To Request for your IRA Administrator to Make a Charitable Distribution from an Individual Retirement Account
As always, we urge you to contact the Office of Gift Planning at 800-826-6709 with any questions or concerns. We look forward to hearing from you!