Alert: IRA Charitable Rollover

Tags: Federation, Philanthropy

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IRA Charitable Rollover Benefit Now Permanent

We are pleased to inform you that newly enacted federal legislation permits the use of tax neutral Individual Retirement Account ("IRA") Charitable Rollover distributions to the Federation or other qualified charities retroactively for 2015 and makes this benefit permanent. Read a Press Release from the office of Senator Sherrod Brown about the provision.

The principal rules for such distributions from an IRA to the Federation provide the following:

  • You must be 70 1/2 or older as of the date of distribution.
  • Each spouse may transfer as much as $100,000 from his/her IRA for 2015 and thereafter to the Federation or other qualifying charities.
  • Such transfers will be excluded from your taxable income for federal tax purposes.
  • Your qualified charitable distribution may also be excludable from your taxable income for state and local tax purposes. In all likelihood, the State of Ohio will pass conforming legislation soon after the beginning of 2016 excluding such distributions from Ohio income tax consequences as well.
  • Distributions may count against the Required Minimum Distribution mandated annually for IRA income beneficiaries.
  • Distributions cannot be made to Donor Advised Funds, supporting organizations, private foundations, charitable remainder trusts, or in exchange for charitable gift annuities.
  • ACT NOW! Rollovers for 2015 must be completed by December 31.

To obtain this benefit and provide support to the Federation, please instruct your IRA administrator to transfer funds directly to the Federation from your IRA. If you withdraw the funds from the IRA first and then contribute them, you will lose this special tax benefit. We urge you to capitalize on this opportunity to strengthen our Jewish community by supporting the annual Campaign for Jewish Needs, creating a FOREVER Fund or Lion of Judah Endowment (LOJE), or establishing an endowment for a selected area of philanthropic interest.

For additional information, please call Matthew Kaliff 216-593-2831 or email mkaliff@jcfcleve.org. Click here for a list of Frequently Asked Questions about IRA Charitable Rollover distributions, a Sample Letter to your IRA Administrator, and and the Federation’s IRS Determination Letter. Of course, we urge you to seek the advice of your professional advisor before you make a Charitable IRA Rollover gift.

The views expressed above are not intended, nor may they be relied upon, as legal, accounting or other professional advice.

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."

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