IRA CHARITABLE ROLLOVER

In December 2015, Congress passed H.R. 2029: Protecting Americans from Tax Hikes (PATH) Act of 2015, which made permanent what is popularly known as the IRA charitable rollover.

Under this legislation, if you are 70 ½ and older you can use your Individual Retirement Account (IRA) to make a gift directly to your favorite charitable institutions, including St. Joseph's Preparatory School. By making this direct distribution to the Prep, you will exclude the amount of the gift from your gross income for federal tax purposes.

Here are the requirements and restrictions for making an IRA charitable rollover gift:

  • The donor must be 70½ or older.
  • The gift must be made directly from the IRA administrator to an eligible charitable organization.
  • Gifts to all charities combined cannot exceed a total of $100,000 per taxpayer for the year.
  • The gifts must be outright, and no material benefits can be received in return for the gifts. Thus a transfer for a gift annuity, charitable remainder trust, or pooled income fund is not permitted.
  • Gifts cannot be made to a donor advised fund, supporting organization, or private foundation.
  • The gift can be made only from an IRA. Gifts from 401(k), 403(b), and 457 plans are not permitted.
  • The gift is not included in taxable income; therefore, no charitable deduction is allowed. The donor will, however, receive an appropriate gift acknowledgment for their records.

To make a gift:

  • Contact your IRA administrator to request that a charitable distribution be transferred to St. Joseph's Preparatory School. You must specify whether the gift is to be made before the end of the calendar year.
  • To ensure gifts are properly recognized and recorded, instruct your IRA administrator to indicate your name on the check and specify that the gift is an IRA charitable distribution.
  • Instruct your IRA administrator to send your check, made payable to St. Joseph's Preparatory School, mail to:

St. Joseph's Preparatory School
Development Office
1733 W. Girard Avenue
Philadelphia, PA 19130
Tax ID:  23-1352675

Please inform Jeannie Murphy at jmurphy@sjprep.org of your intentions to make a gift through your IRA.

St. Joseph's Preparatory School
1733 West Girard Avenue Philadelphia, PA 19130
tel: 215.978.1950
fax: 215.765.1710
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