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IRA Charitable Rollover

On December 18, 2015, President Barack O'Bama signed into law legislation that makes the "tax-free IRA rollovers for charity" permanent for future years. The following summarizes some key aspects of the law.

Use your IRA
Required Minimum Distribution
to Make a Meaningful
Difference at Scripps

  • The donor must be at least age 70 ½ on the day of the gift.
  • The IRA is a traditional IRA or Roth IRA (not 401(k) plan, 403(b), thrift savings plan or other retirement planning vehicle).
  • Maximum $100,000 donation per donor per tax year, aggregated across all qualified distributions.
  • Outright gifts only - not in exchange for life income gifts such as charitable gift annuities.
  • The recipient organization must be aqualified public charity. such as Scripps Health (no donor advised funds, private foundations, or supporting organizations).
  • The IRA custodian makes the distribution/transfer directly to the qualified charity.
  • The full value of the distribution must be made to charity withno "quid pro quo" or other benefit received by the donor, such as event tickets, services or memberships with services of value, etc. from the charity in exchange for the gift.
  • The dollars transferred would be includible in gross income if they were not within a qualified charitable distribution.

Text Box: Although no charitable income tax deduction is allowed for these gifts, amounts contributed are excluded from the donor's gross income and count toward the donor?s annual required minimum distribution.

IRA Rollover Transfer Instructions: Donor must instruct his or her IRA Custodian to make the transfer of a specific sum of cash (or to close the entire IRA account) directly from the IRA account to Scripps Health. Please reference the full name of the IRA owner, owner's address, type of distribution (IRA Rollover) and contact information for the IRA Administrator. A sample letter to the IRA Custodian can be provided by Scripps Health Foundation, Office of Gift Planning, upon request.

The IRA Custodian should mail the IRA rollover check as follows:

Scripps Health Foundation
Attn: Office of Gift Planning
P.O. Box 2669
La Jolla, CA 92038-2669.

Caution : If the Donor takes a distribution from the IRA and then makes a donation to Scripps Health, the transaction will not qualify as an IRA Rollover to Charity. Checks written by the owner of the IRA on an IRA account will not qualify as a Charitable IRA Rollover. The distribution must come directly from the IRA administrator to Scripps Health.

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