The extension of legislation allowing those over age 70 ½ to make direct transfers from traditional and Roth IRAs to qualified charities is scheduled to expire on Dec. 31 unless Congress acts to extend or expand the provision.

The legislation allows individuals age 70 ½ or older to make distributions of up to $100,000 per year to tax-exempt organizations, such as Notre Dame, and to exclude these distributions from taxable income. This effectively reduces the cost of making a gift to Notre Dame by eliminating the federal income tax on an IRA distribution made to the University.

Making an IRA gift

The IRA distribution to Notre Dame must be made as an outright gift rather than through a planned gift vehicle, such as a charitable gift annuity or a charitable remainder trust. The gift must be made directly from the trustee of the IRA to Notre Dame. Also, many donors will find it advantageous to satisfy the mandatory IRA withdrawal obligation by making an IRA rollover gift.

If you would like to learn more about IRA rollover gifts to the University, contact John Butkovich in the Office of Gift Planning at butkovich.1@nd.edu or 574-631-6368. As always, thank you for your generous support of Notre Dame!