IRA Charitable Rollovers

On December 18, 2015, President Obama signed into law the Protecting Americans from Tax Hikes (PATH) Act of 2015, which includes a permanent extension of the IRA Charitable Rollover tax provision. On December 20, 2019, President Trump signed into law the Setting Every Community Up for Retirement Enhancement (SECURE) Act, increasing the minimum age at which an IRA account holder must begin taking annual distributions. Now individuals aged 72 and older - previously 70 1/2 and older - are able to donate up to $100,000 from their Individual Retirement Accounts (IRAs) to a qualified public charity, such as Main Street Community Foundation. Besides supporting a favorite charity and cause, donors benefit by not having to pay federal income taxes on the amount donated.

The requirements to make an IRA Charitable Rollover are:

  • Donors must be at age 72 or older;
  • The maximum amount which may be transferred from an IRA is $100,000;
  • Distributions must be made directly to the charitable organization through the IRA plan administrator;
  • Distributions must be made from traditional or Roth IRAs;
  • The distribution can be made to almost all types of funds held by the Community Foundation. The exception is that a distribution to a donor advised fund will not count as a qualified distribution.

The benefits are:

  • IRA distributions directly to charity are not treated as taxable distributions;
  • IRA distributions to qualified charities qualify for the required minimum distribution (RMD);
  • Assets are removed from your estate;
  • Your generosity helps the communities served by Main Street Community Foundation during critical times.

Disclaimer: The Main Street Community Foundation and the Council on Foundations does not provide legal tax advice; we strongly recommend that you consult with a tax advisor when considering making a charitable contribution.

For information about or assistance with making a gift to Main Street Community Foundation, please contact Susan Sadecki, President & CEO at 860.583.6363 or susan@mainstreetfoundation.org.