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IRA Charitable Rollover

Retirement plan imageUntil December 31, 2013, you can make a tax-free contribution to WETA from your traditional or ROTH IRA if you are aged 70 ½ or older.

H.R. 8, The American Taxpayer Relief Act of 2012, includes a provision for the IRA Charitable Rollover that allows you to make a charitable gift directly from your IRA while excluding the amount of that gift from your adjusted gross income (AGI) for 2013*. To qualify:

  • You must be 70-1/2 or older and required to make an annual distribution from your IRA. The IRA Charitable Rollover permits you to make donations directly to charitable organizations such as WETA from your IRA without counting the distribution as part of your AGI and, consequently, without paying taxes on it.
  • Your total combined charitable IRA rollover contribution cannot exceed $100,000 in any one year.
  • Charitable contributions from an IRA must go directly to a public charity that is not a supporting organization. Contributions to donor-advised funds and private foundations, except in narrow circumstances, do not qualify for tax-free IRA rollover contributions.
  • Distributions can only be made from traditional Individual Retirement Accounts or Roth IRAs. Charitable donations from 403(b) plans, 401(k) plans, pension plans, and other retirement plans are ineligible. Distribution must be made directly from the IRA trustee payable to WETA or another non-profit before December 31, 2013.
  • You cannot receive any goods or services in return for your charitable IRA rollover contribution in order to qualify for tax-free treatment.
  • You must receive an acknowledgement from WETA or other charity for each rollover contribution.

* The new law retroactively reinstates the Rollover for 2012 and allows any otherwise eligible gifts made after December 31, 2012 and before February 1, 2013 to be treated as a 2012 donation. The new law also specifies that any portion of a distribution from an IRA to a taxpayer made after November 30, 2012 and before January 1, 2013 may be treated as a qualified charitable distribution for purposes of the IRA Charitable Rollover.

We recommend that you seek advice from your accountant prior to making a charitable rollover as personal circumstances can have a significant impact on whether charitable rollovers are advantageous. In order to benefit from the 2013-eligible IRA contribution, contact your IRA plan administrator. Please let us know the name of your plan provider so we can look for your check and notify you accordingly. We are happy to provide you with a sample transfer request letter to your plan administrator.

For more information about making an IRA contribution to WETA, contact Debbie Eliason by email or call (703) 998-1834.