Charitable Gifts Through Your IRA


As part of The Tax Relief act of 2010 Congress has allowed an important window to remain open through December 31, 2011 – one that allows individuals age 70½ and older to make direct transfers totaling up to $100,000 per year from their traditional or Roth IRA to eligible charitable organizations, without having to count the transfers as income for federal income tax purposes.

  • Who qualifies? Individuals who are age 70½ or older at the time of the contribution (you have to wait until your actual 70½th birthday to make the transfer).
  • From what accounts can I make transfers? Transfers must come from your traditional or Roth IRA directly to the Huntington’s Disease Society of America (HDSA). If you have retirement assets in a 401(k), 403(b) etc., you must first roll those funds into an IRA, and then you can direct the IRA provider to transfer the funds from the IRA directly to HDSA.
  • To what organizations can I make gifts? Tax exempt charitable organizations that are classified as 501(c) (3) organizations, such as HDSA.
  • Can I use the rollover to fund life-income gifts (charitable gift annuities, charitable remainder trusts, or pooled income funds)? No, these are not eligible.
  • Can I use the rollover to fund donor advised funds or supporting organizations? No, these are not eligible.
  • Can I use the rollover to support a particular HDSA program? Yes, as with all other gifts, you can direct your IRA Charitable Rollover gift as you wish. However, you cannot direct your gift for a purpose from which you receive a personal benefit, goods, or services in return, such as a gala ticket, to purchase items at a silent auction, etc.
  • How will HDSA acknowledge the gift? We will give you full credit for the entire gift amount.
  • Does this transfer qualify as my minimum required distribution? Yes, IRA charitable rollovers count towards your minimum required distributions for the year.
  • How do I know if transferring money from an IRA to a charity is right for me?
    • If you are at least age 70½ and are interested in using funds from your IRA to make a charitable contribution.
    • You take the standard deduction when calculating your taxes.
    • You do not need the additional income necessitated by the minimum required distribution, or
    • You are interested in donating more than 50% of your income, to charity
    • You want to make a substantial gift to a charity for a particular purpose.  
  • What are the tax implications to me?
    • Federal – You do not recognize the transfer to HDSA as income, provided it goes directly from your IRA provider to the Society. However, you are not entitled to an income tax charitable deduction for your gift.
    • State – Each state has different laws, so you will need to consult with your own advisors. Some states have a state income tax and will include this transfer as income. Within those states, some will allow for a state income tax charitable deduction and others will not. Other states base their state income tax on the federal income or federal tax paid. Still other states have no income tax at all.
  • What is the procedure to execute an IRA charitable rollover? To complete an IRA charitable rollover, the first step is to contact your IRA provider to learn their procedures. Please contact Jules Greenwald at either 212.242.1958, extension 235 or jgreenwald@hdsa.org when you direct the rollover so we can look for the check from your IRA provider.