Advance Liberty Through a Tax-Free IRA Rollover

Donors who are 70½ or older, have the opportunity  to make a tax-free transfer from their IRA directly to the Mercatus Center. With every dollar a supporter  transfers to Mercatus, they are helping build a freer society for future generations—and they don’t have to pay the government a cent! Up to $100,000 may be transferred per year, and the gifts must be received by December 31, 2014.

 Requirements:

  • Donors must be at least 70 ½ years old at the time the gift is made.T
  • The gift must come directly from the IRA to a qualified charity.
  • It cannot be for more than $100,000 a year per person
  • This law only applies to IRA’s; other types of retirement funds do not qualify for this gift.

 Benefits:

  • Gifts of this nature may keep a donors tax bracket from going up, and possibly lower it. 
  • A couple with separate IRA’s can each make gifts up to $100,000 
  • The distribution is not taxed and can be applied against your required minimum IRA distribution. 
  • These gifts are not reportable as part of your income, phase outs and limits do not apply but the gifts still count toward your mandatory distributions.  
  • Assets held in IRA’s left to loved ones are subject to income tax when withdrawn by heirs, and may be subject to state and/or federal estate taxes as well. The legislation that created this opportunity expires on December 31, 2013. To date there is no way of knowing if it will be renewed for 2014 and/or future years.

For more information on making a Charitable IRA Rollover gift contact Beth Crane at 703-993-8746 or at bcrane@mercatus.gmu.edu