IRA Charitable Rollover

The IRA charitable rollover is a terrific way to make a tax-free gift to Trinity College.

You can make a tax-free gift from your traditional IRA (other qualified retirement plans such as 401(k)s and 403(b)s are not eligible). You must be at least 70 ½ years old to take advantage of this opportunity. 

You must transfer your gift directly from your IRA administrator to Trinity College. The total of all of your rollover gifts in any one year cannot exceed $108,000 per person. A spouse with a separate IRA could also make a rollover gift of up to $108,000 if they otherwise qualify.

The benefits of an IRA charitable rollover gift include:

1. If you don’t itemize deductions and are not yet required to take your RMD, a QCD offers all of the benefits of an itemized income tax charitable deduction. 
2. If you are age 73 or older and must take your RMD, a QCD can satisfy your RMD without increasing your income taxes.
3. Avoids income tax on IRA withdrawals.
4. Supports the important work of Trinity College with a tax-free gift.

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 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.