Contributing one’s IRA to a Foundation/Charity
1) Is it possible to fund a foundation with $100,000 from an IRA distribution directly from the IRA trustee to the foundation when the IRA owner is over the age of 70.5, or must this contribution of $100,000 go directly to the charity?
2) Does one have to be age 70.5 to be able to contribute $100,000 to a charity form their IRA and receive the tax deduction?
Permalink Submitted by Alan Spross on Tue, 2007-08-21 21:19
1) Here is a paste from Sec 1201 of the PPA. Certain private foundations are approved, but the transfer should still be direct:
“”””A qualified charitable distribution is any distribution from an IRA directly by the IRA trustee to an organization described in section 170(b)(1)(A) (other than an organization described in section 509(a)(3) or a donor advised fund (as defined in section 4966(d)(2)). Distributions are eligible for the exclusion only if made on or after the date the IRA owner attains age 70-½.””””
Donor advised funds are specifically prohibited (Sec 4966).
2) For the direct contribution from an IRA, there is NO deduction on Sch A because the funds have never been included in income and the transfer enables them to avoid inclusion resulting from the transfer. Donor must be age 70.5 and up on the date of transfer.