IMPORTANT NOTICE: TAX-Free IRA Rollover Opportunity Renewed!
In December 2010, Congress extended the IRA Rollover opportunity, permitting IRA owners age 70 ½ and older to make distributions to Oberlin and other qualified organizations of up to $100,000 per year.
This giving opportunity is available through December 31, 2011. It
provides retroactive benefits for gifts made in 2010. Congress also provided a grace period allowing donors to make 2010 distributions through January 31, 2011.
Can I take advantage of this giving opportunity?
You must be 70½ years of age at the time of gift, and your gift can only come from a traditional or Roth IRA. Other retirement plans, such as pensions, 401(k) plans and others are not eligible.
How does making a gift from my IRA benefit me?
Is your Required Minimum Distribution from your IRA more income than you need? Consider transferring the portion of the distribution you do not need directly to Oberlin. Why? You will still meet the minimum distribution requirement and will not have to pay any tax on the portion you gift to Oberlin because it won’t be included in your gross income.
Do you claim itemized deductions which are subject to adjusted gross income thresholds such as medical expenses? Direct IRA rollover gifts are not included in the calculation of income so you can make a significant gift without negatively impacting the amount you may claim as an itemized deduction.
Are you unable to itemize your deductions for income tax purposes? Taking advantage of the IRA rollover provision allows you to transfer money directly from your IRA to Oberlin without including the distributions in your taxable income, thus eliminating the need to offset income with a deduction.
Are the bulk of you assets in an IRA? This is a great opportunity to use some of your hard earned money to support Oberlin’s educational mission without incurring additional income tax and reduce the size of your taxable estate?
Have you made significant charitable gifts this year and run into the 50% of AGI ceiling? You can now transfer money directly to Oberlin from your IRA. Direct rollover gifts aren’t subject to this limitation and won't be taxed as distributions.
Contact your IRA custodian and inform them you want to make a charitable distribution from your IRA to Oberlin. Only the IRA custodian can transfer gift amounts to a qualified organization. Distribution checks should be issued in the name of Oberlin College, not to you to avoid inclusion of the distribution in your gross income.
Ask that the check be mailed directly to:
Oberlin College–Office of Gift Planning, 50 West Lorain St., Oberlin, OH 44074
Contact the Office of Gift Planning at (440) 775-8599 to let us know to expect your gift and where you would like the gift directed. It is important to let us know the gift is coming as some IRA custodians do not identify the donor on the check.
$100,000 may be distributed in both 2010 and 2011. No charitable income tax deduction is allowed because the funds transferred from your IRA are not subject to any income tax upon withdrawal.
Taking the next step:
To learn more about the Pension Protection Act of 2006 and its potential impact on your IRA rollover, please contact us at gift.planning@oberlin.edu or (440) 775-8599. We also encourage you to fill out the request for information form so we may better assist you.
