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Making a gift through your IRA

Making a gift through your IRA

In 2015, Congress passed and the President signed the PATH Act making permanent the ability for individuals to roll over up to $100,000 from an individual retirement account (IRA) directly to a qualifying charity without recognizing the assets transferred to the qualifying charity as taxable income.

Under this legislation, donors may be able to make outright gifts of up to $100,000 to RAFI from their traditional or Roth IRA and have such gifts count toward their minimum distribution requirement while also excluding the transferred amount from their taxable income. To qualify, the donor must meet the following requirements:

You must be 70.5 or older for QCDs or 73 for RMDs

The transfer must go directly from your traditional or Roth IRA to Rural Advancement Foundation International-USA. (SEPs – Simplified Employee Pension are not eligible.)

Your gift cannot exceed $100,000 per year.

Your gift counts toward your required minimum distribution.

You will pay no federal income tax on your distribution. However, the distribution is not reportable as income, so you will NOT receive a charitable income tax deduction for the gift. Discuss these with your tax planner as state taxes may still apply.

Please note that transfers to charitable remainder trusts, gift annuities, donor advised funds and private foundations do not qualify.

Our tax-identification number is: 56-1704863.

Our mailing address is:

RAFI
P. O. Box 640
Pittsboro, NC 27312

Questions? Please contact Susan Alan at [email protected] or call 919.542.1396 (ext. 201). 

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