Individual Retirement Account Charitable Contributions
2006 - 2007
Qualified IRA Contributions
Donors must be at least 70 1/2 on the date directly from an IRA. Since the number of days in each month is not uniform, it may be desirable to wait until six calendar months and three days after an IRA owner's 70th birthday to start making IRA gifts.
Donors must process the rollover IRA gifts in a specific manner. The contribution must be sent directly from the IRA plan trustee (administrator) to the qualified charity (CSU Long Beach, Foundation). IRAs are held by a custodian, usually large financial service companies, banks or trust companies. If your IRA custodian does not have a form available, click here for a form letter you may use. Also, listed below is a form letter we would appreciate you send informing the CSU Long Beach, Foundation of the forthcoming qualified distribution from your IRA.
We encourage you to consult your own legal or tax advisor to see how you might be affected by this type of gift and insure that your IRA is a Qualified IRA.
At 70 1/2 you must begin taking required minimum distribtions (RMD) from your IRA regardless of whether or not you actually need the money. A distribution to a qualified charitable organization (CSULB Foundation) can count toward your RMD.
You can transfer to CSULB Foundation up to $100,000 in 2006 and 2007, for a possible two-year total of $200,000 per person. These are the only years under current law in which these IRA gifts can be made.
Since this contribution is coming from pre-tax assets, you will not be able to claim a charitable income tax deduction for this gift. The funds transferred willl not be included in your income for tax purposes, nor will there be an offsetting charitable deduction. Qualified IRA gifts are not included in taxable income and should not affect any of your other charitable gifts.
Qualified IRA gifts do not require filing an itemized tax return in order to be excluded from income.
NOT all retirement plans qualify; traditional, rollover or Roth IRAs are eligible. Your tax advisors and IRA plan custodian will be able to help you determine whether you currently have an IRA plan that will work or not. Donors may NOT rollover IRA assets to fund Donor Advised Fund, Charitable Gift Annuities or Charitable Trust. It must be an outright gift and NOT include a benefit back to the donor.
* Donor Information to the Foundation
* Donor Request to the Financial Institution
THANK YOU!
