Martin Majkut Music Director

IRA Charitable Distribution

It’s Now Easier to Make Your Gift through Your IRA

Rogue Valley Symphony donors and prospective donors who have reached age 70 1/2: Now you can make a year-end donation from your IRA without income tax consequences.
 
The IRA Charitable Distribution provision has been made permanent.
The IRA Charitable Distribution provision allows individuals who have reached age 70-1/2 to donate up to $100,000 per year directly from their Individual Retirement Account (IRA) to an eligible charitable organization without incurring any adverse federal income tax consequences.
The IRA Charitable Distribution has proven to generate new and increased charitable donations for orchestras in the years it has been available. Since its first enactment in 2006, the provision has been renewed and expired five times, leaving donors unable to take full advantage of incentives to give more.
That cycle has finally come to an end, thanks to bipartisan passage of the PATH Act in 2015.
 
2016 and Beyond:
The IRA Charitable Distribution provision is reinstated for 2016 and beyond! This means that donors can reliably include the IRA Charitable Distribution in their plans as they determine their charitable giving options.
 
Please contact Executive Director Jane E. Kenworthy to find out more information about making a gift through your IRA, 541-708-6402.
  • Who qualifies? Individuals who are age 70½ or older at the time of the distribution (you have to wait until your actual 70½th birthdate to make the transfer).
  • How much can I transfer? $100,000 per year.
  • From what accounts can I make transfers? Transfers must come from your IRAs directly to the Rogue Valley Symphony. If you have retirement assets in a 401(k), 403(b) etc., you must first roll those funds into an IRA, and then you can direct the IRA provider to transfer the funds from the IRA directly to the Rogue Valley Symphony.
  • To what organizations can I make gifts? Tax exempt organizations that are classified as 501(c)(3) organizations, including the Rogue Valley Symphony, to which deductible contributions can be made.
  • Can I use the distribution to fund life-income gifts (charitable gift annuities, charitable remainder trusts, or pooled income funds), donor advised funds or supporting organizations? No, these are not eligible.
  • Can I use the rollover to support a particular purpose of the Rogue Valley Symphony? As with all other gifts, you can direct your IRA Charitable Rollover gift as you see fit. However, you cannot direct your gift for a purpose from which you receive a personal benefit, goods, or services in return, such as a gala ticket, to purchase items at a silent auction, etc.
  • How will the Rogue Valley Symphony count the gift? We will give you full credit for the entire gift amount.
  • What are the tax implications to me?
    • Federal — You do not recognize the distribution to the Rogue Valley Symphony as income, provided it goes directly from the IRA provider to us. However, you are not entitled to an income tax charitable deduction for your gift.
    • State — Each state has different laws so you will need to consult with your own advisors. Some states have a state income tax and will include this transfer as income. Within those states, some will allow for a state income tax charitable deduction and others will not. Other states base their state income tax on the federal income or federal tax paid. Still other states have no income tax at all.
  • Does this transfer qualify as my minimum required distribution? Once you reach age 70½, you are required to take minimum distributions from your retirement plans each year according to a federal formula. IRA charitable distributions count towards your minimum required distributions for the year.
  • How do I know if an IRA charitable rollover is right for me? If you are at least age 70½ and
    • You do not need the additional income necessitated by the minimum required distribution, OR
    • Your charitable gifts already equal 50% of your adjusted gross income, so you do not benefit from an income tax charitable deduction for additional gifts, OR
    • You do not itemize deductions, OR
    • You are subject to income tax deduction and exemption phase outs
  • What is the procedure to execute an IRA charitable rollover? To complete an IRA charitable distribution, the first step is to contact your IRA provider to learn their procedures. Make sure to contact us when you direct the distribution so we can look for the check from your IRA provider.