IRA Charitable Rollover
IRA Qualified Charitable Distribution Instructions:
Thank you for considering a charitable gift to St. Francis of Assisi Parish (SFA) from your IRA account. Under federal tax law, a taxpayer age 70 1/2 or older may make charitable distributions directly from his or her IRA to SFA without incurring taxable income (sometimes called a “rollover” gift). The gift must come directly from the taxpayer’s IRA administrator to the parish and can satisfy all or some portion of the taxpayer’s required minimum distribution for the year. While there is no charitable deduction for such a gift, the taxpayer avoids payment of income tax on the gift portion of the required minimum distribution that would otherwise be paid by the taxpayer. The total of a taxpayer’s qualified charitable gifts in any one year cannot exceed $100,000 from his or her IRA.
On the following page, we provide a form letter you may use to notify your IRA Administrator of your intention to make a qualified charitable distribution from your IRA to SFA. The transfer from your IRA Administrator may be made to SFA by check.
Your IRA Administrator may require other forms in addition to the attached correspondence. Please contact your IRA Administrator to ensure that all necessary steps are completed to finalize your charitable distribution. We also encourage you to consult with your tax advisor when considering this type of gift.
Sample Letter to request Distribution or Rollover from IRA:
Name of IRA Administrator
IRA Administrator Address
RE: Request for a Qualified Charitable Distribution or Charitable Rollover from IRA
Dear IRA Administrator:
Please accept this letter as my request and authorization to make a qualified direct charitable distribution from my Individual Retirement Account # ______________________ as provided in The Protecting Americans from Tax Hikes Act of 2015 Section 408(d)(8) of the Internal Revenue Code of 1986, as amended.
Please issue a check in the amount of $ _____________ payable to St. Francis of Assisi Parish and mail it to:
St. Francis of Assisi Parish, 601 N. 8th Street, Manitowoc, WI 54220
St. Francis of Assisi tax identification number is 39-0806345.
In your transmittal to St. Francis of Assisi Parish, please include my name and address as the donor of record in connection with the distribution and copy me on your correspondence.
It is my intention that this distribution qualify for exclusion from my taxable income during the tax year of ___________.
If you have any questions or need to contact me, I can be reached at _____________.
Thank you for your assistance with this matter.
Sample Letter from Donor Informing SFA of Forthcoming Distribution from IRA Administrator:
St. Francis of Assisi Parish
601 N. 8th Street
Manitowoc, WI 54220
To Whom It May Concern:
It is my pleasure to inform you that I have requested a qualified charitable distribution from my Individual Retirement Account (IRA) to St. Francis of Assisi Parish in the amount of $ _____________ from my plan trustee/administrator, ______________________.
It is my intention to comply with current policy that permits a rollover directly from an IRA to a qualified public charity.
Accordingly, upon your receipt of payment from my trustee/administrator, please send me a contemporaneous written acknowledgement that states the amount of my gift, that no goods or services were transferred to me by St. Francis of Assisi Parish in consideration for this gift, and that my gift will not be placed in a donor advised fund or supporting organization. Even though I will receive an acknowledgement of this distribution, I understand that there is no federal charitable income tax deduction for this distribution.
If you have any questions or need to contact me, I can be reached at the following telephone number: _____________________.