The American Red Cross, a humanitarian organization led by volunteers and guided by its Congressional Charter and the Fundamental Principles of the International Red Cross Movement, will provide relief to victims of disaster and help prevent, prepare for and respond to emergencies.
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Nuts and Bolts of IRA Gift Transfers
- Donors must be past the age of 70H when the gift occurs and own a traditional or Roth IRA – other retirement plans such as pensions, 401(k) plans and others are not eligible, although it may be possible to “roll over” those plans into IRAs and then make qualified IRA gifts.
- Only the IRA custodian can transfer gift amounts to a qualified organization. If IRA owners withdraw funds and then contribute them to the Red Cross separately, amounts withdrawn will be included in the donor’s gross income.
- No charitable deductions are allowed, but transfers to the American Red Cross count toward the IRA owner’s required annual distribution and therefore can reduce taxable income. IRA gifts will not impair deductibility of regular charitable contributions.
- IRA gifts may not exceed $100,000 and must be made before January 1, 2008. The “ceilings” on contribution deductions (50% of adjusted gross income for cash, 30% of AGI for long-term capital gain property) do not apply to IRA gifts.
- IRA gifts cannot be made for charitable remainder trusts, charitable gift annuities or any arrangements that provide a return benefit for the contributor.
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© Copyright 2005 The
American National Red Cross. All Rights Reserved.
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The articles in the issues of the Legacy newsletters are for general illustration purposes only. Information, Gift annuity and tax rates were current as of the time of publication. There can be no guarantee that such information will continue to be accurate in the future. Interested Donors should check with the Gift Planning Office for current rates and deduction amounts before completing their gifts. Calculations of tax deductions will vary based on applicable federal discount rates, which change on a monthly basis. The American National Red Cross is not engaged in rendering legal or tax advisory service. For advice or assistance in specific cases, the services of an attorney or other professional advisor should be obtained. Certain links in this site connect to other Web sites maintained by third parties over whom the American National Red Cross has no control. American National Red Cross makes no representations as to the accuracy or any other aspect of information contained in other Web sites.