Make Tax-Free Gifts From Your IRA:
Getting Started

A The IRA Charitable Rollover allows taxpayers who are aged 70 ½ or older to transfer up to $100,000 per year directly from an individual retirement account (IRA) to a charitable organization such as Case Western Reserve University and avoid paying income tax.

The rollover approach typically translates into a greater reduction in taxes than if withdrawing from an IRA as income and then claiming a charitable deduction. This advantage is particularly true for people living in states, including Ohio, that do not provide a tax benefit for charitable contributions.

Previously you would have had to report any amount taken from your IRA as taxable income. You could then take a charitable deduction for the gift, but only up to 50 percent of your adjusted gross income. In effect, this caused some donors to pay more in income taxes than they would have if they hadn’t made a gift at all.

Fortunately, now these IRA gifts can be made more easily and without tax complications. Plus, you can make the gifts now—while you are living and able to witness the benefits of your generosity. This unique opportunity expires at the end of 2013.

You may contribute funds this way if:

  • You are age 70½ or older at the time of the gift.
  • You transfer up to $100,000 directly from your IRA. This opportunity applies only to IRAs and not other types of retirement plans.
  • You transfer the funds outright to Case Western Reserve University. The legislation does not permit direct transfers to charitable trusts, donor advised funds, charitable gift annuities or supporting organizations.
  • You make your gift by Dec. 31, 2013 – this will qualify as a 2013 gift.

Your benefits:

  • The transfer generates neither taxable income nor a tax deduction, so you will receive the benefit even if you do not itemize your tax deductions.
  • The transfer is credited against your required minimum distribution from your IRAs in the year in which the rollover is made.
  • You'll make an immediate impact on us, allowing you to witness the benefits of your generosity.

Directing your IRA plan provider to distribute funds from your IRA to Case Western Reserve University:

Click here to download a Microsoft Word document that can be used as a template with your plan provider for contributions to apply in the 2013 tax year.

How the extended law works:

Pat, aged 80, has $450,000 in an IRA and has pledged to give Case Western Reserve University $75,000 this year. If Pat transfers $75,000 to us directly from the IRA, she will avoid paying income tax on that amount. She cannot, however, claim a charitable deduction—it is a pure wash. Pat has found an easy way to benefit us without tax complications. If Pat’s spouse has an IRA and is 70½ or older, he can also give up to $100,000 tax-free to a qualified charity of his choice.

For more information:

If you have questions or would like assistance in making a gift to Case Western Reserve, please contact either:

Charles M. Miller, J.D
Senior Director of Planned Giving
cmm38@case.edu
216-368-8640
Toll Free: 877-477-1143
John F. Shelley, J.D.
Senior Philanthropic Advisor
Jfs106@case.edu
216-368-3733
Toll Free: 877-477-1143