There is good economic news for seniors interested in making a charitable gift to Michigan State University thanks to a recent tax code amendment that included a permanent extension of the IRA charitable rollover.
Donors age 70½ or older can now make tax-free charitable gifts of up to $100,000 per year directly from their Individual Retirement Accounts to eligible charities, including colleges, universities and independent schools.
“This provision gives Spartans and friends of MSU a way to take advantage of an incentive in the tax code and make a difference for our students and faculty,” said Robert Groves, vice president for University Advancement.
HOW IT WORKS:
Taxpayers age 70½ and older are required to take annual distributions from their IRAs, which then are included in their adjusted gross income and subject to tax. The IRA charitable rollover permits taxpayers to make donations directly to charitable organizations from their IRAs without counting them as part of their AGI. This rollover distribution counts toward the required minimum distribution for IRA holders.
To make a gift to MSU using the IRA charitable rollover:
- Contact your IRA administrator and authorize them to send a check from your IRA directly to MSU.
- Ask your IRA trustee or administrator to clearly reveal this is an IRA rollover provision gift for 2015 and identify you as the IRA account owner.
- Be sure to have your administrator include how and where MSU is to use your IRA gift.
- Send your IRA Charitable Rollover gift to:
University Development
c/o Lynn Pfaff
300 Spartan Way
East Lansing, MI 48824-1005
For more information, contact the MSU Office of Gift Planning at (800) 232-4678 or (517) 884-1000; or the director of development for your college or unit.