IRA Charitable Rollover Legislation FAQs

Am I eligible to make a tax-free distribution from my IRA?
You can take advantage of this opportunity if you have reached age 70½ by the date of your distribution and have an IRA.

How long do I have to act?
Federal legislation passed on December 11, 2015 is permanent. You may take advantage of this opportunity every year.

How much can I distribute?
You may distribute up to $100,000 per year. These distributions may count toward your Required Minimum Distribution (RMD) but are not limited to the RMD amount.

To whom can I transfer?
You may make a Qualified Charitable Distribution (the term used in the law) from your IRA directly to the Federation or another public charity recognized by the Internal Revenue Service. However, the distribution may not be distributed to a donor advised fund, supporting foundation, private foundation, charitable remainder trust or charitable gift annuity.

What are the tax advantages of distributions from my IRA?
A transfer from your IRA is not subject to federal or Ohio income tax. Note that the potential tax savings is available both for donors who itemize and those who do not.

Can I direct how my distribution will be used?
Yes. You may earmark the distribution toward a specific use at the Federation, including:

  • Supporting the annual Campaign for Jewish Needs;
  • Creating a Lion of Judah Endowment or FOREVER Fund to endow your annual gift;
  • Establishing a special endowment fund to support a focused area of interest to you in the Jewish community

How do I make this distribution?
Instruct your IRA administrator in writing to distribute any amount, up to $100,000, from your IRA to the Federation. The Federation would be pleased to provide you with a sample letter you may use to direct this distribution.

Please contact Matthew Kaliff, 216-593-2831 or mkaliff@jcfcleve.org for assistance or more information.   All inquiries are confidential.

This material is presented for informative purposes only and should not be construed as legal, tax or financial advice.  When considering gift planning strategies, you should always consult with your own legal, tax and financial advisors.           

The Jewish Federation of Cleveland (license #CH22328) is registered to solicit charitable donations within Florida and provides disclosure as required by Chapter 496 of the Florida Solicitation of Contributions Act as follows:

“A copy of the official registration and financial information may be obtained from the division of Consumer Services by calling toll-free (800-435-7352) within the state or by visiting www.800helpfla.com.   Registration does not imply endorsement, approval or recommendation by the state.”

Sample Letter to IRA Administrator

Your Name
Your Address
City, State  ZIP

Date

Name of IRA Company
Address
City, State  ZIP

ReRequest for Charitable Distribution from Your Name (__________________)
Individual Retirement Account #(______)

Dear Sir or Madam:

Please make a direct charitable distribution from my Individual Retirement Account # _______

Please issue a check in the amount of $__________ payable to the Jewish Federation of Cleveland (the “Federation”) at the address below:

Jewish Federation of Cleveland
Jack, Joseph and Morton Mandel Building
25701 Science Park Dr.
Cleveland, OH 44122
Attn:  Kari Blumenthal, Director of Finance

In your transmittal to the Federation, please list my name and address as the donor of record in connection with this transfer.  I would appreciate if you would copy me on your transmittal.  I am enclosing a copy of the Federation’s IRS tax determination letter as a public charity for your reference. 

I have designated this transfer to the Federation for its:

_____ Campaign for Jewish Needs; and/or
_____ Endowment Fund e.g. FOREVER Fund or Lion of Judah Endowment

It is my intention to have this transfer qualify for exclusion during the 2017 tax year.  Therefore, it is imperative this distribution be postmarked no later than December 31, 2017.

If you have any questions or need to contact me, I can be reached by telephone at _____________ or via e-mail at ______________.

Thank you for your assistance in this matter.

Sincerely,

 

Your Name
Plan Owner

Enclosure (Federation IRS letter)
cc:  Kari Blumenthal, Director of Finance, Jewish Federation of Cleveland

Federation Tax-Exempt Status

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