2018-11-07 / Federation

Turn your Required Distributions into donations

If you are over 70 1/2 years of age and have an IRA, we have some great news for you! You can now make a tax-free rollover gift from your IRA of up to $100,000 to the Jewish Federation of Southern NJ.

It’s called an IRA Charitable Rollover Gift, and thanks to the “Protecting Americans from Tax Hikes (PATH) Act” of 2015, the amount you transfer may satisfy your entire Required Minimum Distribution (RMD) and is TAX-FREE! (Yes, even though the money comes from an IRA, it is excluded from taxable income.)

The following guidelines/restrictions apply for making an IRA Charitable Rollover gift:

• The donor must be 70 1/2 years old or older.

• The IRA transfer must go directly from your IRA to Federation.

• Married couples may each donate up to $100,000 from individual IRA accounts.

• Transfers of IRA assets cannot be made to donor advised funds, supporting organizations, charitable gift annuities, or charitable remainder trusts. The gift is not eligible for an additional charitable income tax deduction.

If you qualify, consider using your IRA Charitable Rollover to fulfill your pledge to Federation’s Annual Campaign, to create an Annual Campaign Endowment, or increase your legacy by adding to an existing endowment.

The process of making an IRA Charitable Rollover starts with your IRA provider. Contact your IRA provider for instructions or call Federation for a sample letter you can personalize to instruct your IRA provider.

To authorize a wire transfer from your IRA account or if you have questions, please call (856) 751-9500, ext. 1222 to speak to Amy Clayman, Federation Chief Financial Officer.

Return to top