IRA Charitable Rollover

Due to recently enacted legislation, you may also be able to make a gift to charity with a distribution from your Individual Retirement Account (IRA), and take advantage of tax savings. Under The Protecting Americans from Tax Hikes Act of 2015, Americans over the age of 70½ can distribute up to $100,000 in a calendar year from an IRA to Lake Erie Council, Boy Scouts of America or other charities, tax-free. This distribution to charity can be a significant benefit for IRA owners who are required each year to take minimum required distributions, which are included in their gross income for income tax purposes.

If an IRA owner directs the IRA plan administrator to distribute any amount up to $100,000 to charity, the distribution counts toward the owner's minimum required distribution, but is not included in his or her income for income tax purposes. Although the IRA owner is not entitled to a charitable deduction for the distribution, the distribution benefits charity. This option is known as the "IRA charitable rollover."

Here's How It Works:

  • You must be 70½ or older at the time of distribution.
  • You may distribute any amount up to $100,000 in a calendar year to charity, as long it is completed by December 31 of the year in which you intend to make the charitable distribution.
  • Your IRA administrator must make the distribution directly to the charity, or you may write a check payable to the charity from your IRA checkbook.

If you have questions, please call Scott Evans, chief development officer, at 216-498-8927, or email scott.evans2@scouting.org. Before proceeding, you should also consult with your tax advisor to discuss your particular situation including any impact of your state's tax laws.