IRA (Individual Retirement Account) Distribution Gifts

An IRA owner age 70½ and older may take advantage of the IRA charitable rollover provision. This provision allows an older taxpayer to make tax-free distributions of up to US$100,000 from his/her IRA to qualified charitable organizations, such as FUTI.   Charitable distributions from the IRA can be used to satisfy the annual required minimum distribution (RMD).

 

Details of the provision:

  • You must be of age 70½ or older on the date of the distribution.
  • A maximum of US$100,000 per year may be distributed to qualified charitable organizations.
  • Distributions must be transmitted from either your financial advisor or your IRA custodian directly to a charitable organization like FUTI.
  • Distributions to charity can be applied to satisfy your required minimum distribution (RMD).
  • The donation will reduce your adjusted gross income (AGI) for the year, and thus reduce your tax obligations.
  • This provision applies to IRAs only, and does not apply to other forms of retirement plans such as 401(k) and 403(b) .

 

Before transferring your distribution. Please fill out this Donation By IRA Form(fillable and printable) and send it to us at the FUTI office by fax, or by email attachment (please refer to the form for fax# and email address). Then contact by email or by phone at (212) 977-1897. We will provide FUTI’s bank information such as ABA and account numbers.