Make a Tax-Smart Gift from Your IRA

If you are age 70½ or older, you may be able to make a meaningful gift to SUNY Purchase through a direct transfer from your Individual Retirement Account (IRA).

Federal law allows eligible individuals to transfer up to $100,000 per year directly from an IRA to a qualified charitable organization, such as the SUNY Purchase Foundation, without counting the transfer as taxable income.

This type of gift is often called a charitable IRA rollover or qualified charitable distribution (QCD).

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Is an IRA Rollover Gift Right for You?

It may be a good option if:

• You are required to take a minimum distribution from your IRA, but do not need the additional income.

• You do not itemize your deductions. The IRA transfer will not be included in your taxable income, even if you do not itemize.

• You would like to make a larger charitable gift, but are limited by the annual 50 percent of adjusted gross income deduction cap. Because the transfer is excluded from taxable income, it functions similarly to a charitable deduction.

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Requirements and Restrictions

To qualify:

• You must be age 70½ or older at the time of the gift.

• The transfer must be made directly from your IRA to the charitable organization.

• The total amount transferred to all charities combined cannot exceed $100,000 per individual per year.

• The gift must be outright. No material benefits may be received in return.

• Gifts cannot fund a gift annuity, charitable remainder trust, or pooled income fund.

• Gifts cannot be made to a donor-advised fund, supporting organization, or private foundation.

• The transfer must come from an IRA. Gifts from 401(k), 403(b), or 457 plans do not qualify.

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For guidance specific to your situation, we encourage you to consult your financial advisor or IRA administrator.

Make the most of your required distribution — and make a lasting impact at SUNY Purchase.