Saint Meinrad Archabbey

A catholic monastery devoted to the teachings of St. Benedict


New law allows IRA rollover for charity

December 21, 2015

For those aged 70½ or older, it is once again possible to make tax-favored charitable gifts from traditional and Roth IRA accounts.

On December 18, Congress passed legislation retroactively extending the charitable IRA rollover for 2015 and makes this provision permanent for future years. A total of up to $100,000 can be transferred directly from traditional or Roth IRAs to a qualified charity, such as Saint Meinrad Archabbey, free from federal income tax each year.

There may also be state income tax savings. Amounts given in this way count toward required IRA minimum withdrawal amounts for the year of the gift.

To make such gifts, it is important to not withdraw funds prior to a gift, but have the gift amount distributed directly from an IRA to one or more qualified charities. For those with check writing privileges on their accounts, this may be the most efficient way to make gifts directly from an IRA.

If you already made a gift of up to $100,000 from an IRA in 2015, the gift will qualify under the new law.

The new law makes the IRA charitable rollover permanent, which gives donors who are 70½ or older the option to use the required distribution from their IRA as a charitable gift every year. This is good news for people who wanted to make a charitable gift from retirement assets, but were discouraged from doing so because of the income tax penalty.

Check with the Saint Meinrad Development Office, your IRA administrator or your tax advisor for more information. You can contact the Development Office at (800) 682-0988 or