A Tax-Saving Way to Help The Pennsylvania State University
See Your Generosity in Action
If you are 70½ years old or older, you can take advantage of a simple way to benefit The Pennsylvania State University and receive tax benefits in return. You can give up to $100,000 from your IRA directly to a qualified charity such as Penn State without having to pay income taxes on the money.
This law no longer has an expiration date so you are free to make annual gifts to Penn State this year and well into the future.
Why Consider This Gift?
- Your gift will be put to use today, allowing you to see the difference your donation is making.
- You pay no income taxes on the gift. The transfer generates neither taxable income nor a tax deduction, so you benefit even if you do not itemize your deductions.
- If you have not yet taken your required minimum distribution for the year, your IRA charitable rollover gift can satisfy all or part of that requirement.
Take Advantage of an IRA Rollover for Gifts to Penn State
- Fill out the Notice to IRA Plan Administrator form and mail to your IRA plan administrator.
- Fill out the Notify Penn State Office of Gift Planning form and send to the Penn State Office of Gift Planning via fax, e-mail or address provided.
Frequently Asked Questions
Q. I've already named Penn State as the beneficiary of my IRA. What are the benefits if I make a gift now instead of after my lifetime?
A. By making a gift this year of up to $100,000 from your IRA, you can see your philanthropic dollars at work. You are jump-starting the legacy you would like to leave and giving yourself the joy of watching your philanthropy take shape. Moreover, you can fulfill any outstanding pledge you may have made by transferring that amount from your IRA as long as it is $100,000 or less for the year.
Q. I'm turning age 70½ in a few months. Can I make this gift now?
A. No. The legislation requires you to be at least age 70½ at the time you make the gift.
Q. I have several retirement accounts—some are pensions and some are IRAs. Does it matter which retirement account I use?
A. Yes. Direct rollovers to a qualified charity can be made only from an IRA. Under certain circumstances, however, you may be able to roll assets from a pension, profit sharing, 401(k) or 403(b) plan into an IRA and then make the transfer from the IRA directly to Penn State. To determine if a rollover to an IRA is available for your plan, speak with your plan administrator.
Q. Can my gift be used as my required minimum distribution under the law?
A. Yes, absolutely. If you have not yet taken your required minimum distribution, the IRA charitable rollover gift can satisfy all or part of that requirement. Contact your IRA custodian to complete the gift.
Q. Do I need to give my entire IRA to be eligible for the tax benefits?
A. No. You can give any amount under this provision, as long as it is $100,000 or less this year. If your IRA is valued at more than $100,000, you can transfer a portion of it to fund a charitable gift.
Q. I have two charities I want to support. Can I give $100,000 from my IRA to each?
A. No. Under the law, you can give a maximum of $100,000. For example, you can give each organization $50,000 this year or any other combination that totals $100,000 or less. Any amount of more than $100,000 in one year must be reported as taxable income.
Q. My spouse and I would like to give more than $100,000. How can we do that?
A. If you have a spouse (as defined by the IRS) who is 70½ or older and has an IRA, he or she can also give up to $100,000 from his or her IRA.
Q. Can a rollover gift be used to maintain or improve a donor's standing in the Nittany Lion Club?
A. No. While a charitable IRA rollover gift can be made to Athletics, the donor is not permitted to receive any Nittany Lion Club priority points or other privileges in exchange for the gift. Otherwise, the gift will not be a qualified charitable IRA rollover.
Q. Are there any benefits that a donor can receive?
A. At Penn State, a charitable IRA rollover gift is allowed to count toward naming opportunities and toward recognition society memberships for lifelong giving. It can also be used to satisfy existing pledges. It may not be used for giving where membership has benefits, or the donor is receiving something in exchange for their contribution.
It is wise to consult with your tax professionals if you are contemplating a charitable gift under the extended law. Please feel free to contact Michael J. Degenhart at 888-800-9170 (toll free) or firstname.lastname@example.org with any questions you may have.
The information on this website is not intended as legal or tax advice. For such advice, please consult an attorney or tax advisor. Figures cited in examples are for hypothetical purposes only and are subject to change. References to estate and income taxes include federal taxes only. State income/estate taxes or state law may impact your results. Annuities are subject to regulation by the State of California. Payments under such agreements, however, are not protected or otherwise guaranteed by any government agency or the California Life and Health Insurance Guarantee Association. A charitable gift annuity is not regulated by the Oklahoma Insurance Department and is not protected by a guaranty association affiliated with the Oklahoma Insurance Department. Charitable gift annuities are not regulated by and are not under the jurisdiction of the South Dakota Division of Insurance.