Charitable IRA Rollover

 

FREQUENTLY ASKED QUESTIONS

What is the IRA Charitable Rollover?

The IRA Charitable Rollover is a qualified charitable distribution (an otherwise taxable distribution) from an Individual Retirement Account (IRA) owned by an individual who is age 70½ or older that is paid directly from the IRA to Villanova University.

How much can I transfer through an IRA Charitable Rollover?

You can transfer up to $100,000 annually from each of your qualified retirement plans to Villanova.

Can an IRA Charitable Rollover satisfy my required minimum distribution?

Yes. A qualified charitable distribution can satisfy all or part of the required minimum distribution from your IRA.

Are there any other tax advantages of gifting through an IRA Charitable Rollover?

Yes. Qualified charitable distributions are not subject to percentage of AGI limitations for charitable contributions and are not reportable as income for federal income tax or for Social Security income purposes. The amounts withdrawn are not subject to state income taxes in most states. Amounts withdrawn from an IRA account are removed from your taxable estate.

Is an income tax deduction also available?

No. The gift would be excluded from income, so providing a deduction in addition to that exclusion would create an inappropriate double tax benefit.

Can an IRA Charitable Rollover be used to satisfy my pledge to Villanova?

Yes. You can honor your pledge to Villanova through a qualified charitable distribution from your IRA.

I have already named Villanova as the beneficiary of my IRA.  What are the benefits to me if I make a gift now instead of or in addition to after my lifetime?

By making a qualified charitable distribution today you can see your legacy in action. Amounts withdrawn from IRA accounts are removed from your taxable estate. Contact a member of the Gift and Estate Planning team to learn about creative and impactful ways to blend current support through a Charitable IRA Rollover with a Revocable Charitable Bequest.

Can other retirement plans, such as 401(k) and 403(b) accounts, be used?

No. However, it may be possible to make a tax-free transfer from such other accounts to an IRA, from which a qualified charitable distribution can then be made.

Can an IRA Charitable Rollover be used to pay for fees related to Finneran Pavilion seating and tickets?

No. An IRA Charitable Rollover cannot be used to pay for capital seat fees, annual ticket premiums or the cost of season tickets.

Are there any other prohibited uses of an IRA Charitable Rollover?

Yes. Most gifts to a private foundation, donor-advised fund, or supporting organization are not eligible. Gifts to a charitable remainder trust, lead trust, pooled income fund, or charitable gift annuity are not eligible.

What is the process to make a qualified contribution to Villanova through an IRA Charitable Rollover?

Contact your IRA plan administrator directly and let them know of your interest in making a qualified charitable distribution to Villanova. If your administrator sends the contribution directly to Villanova, please let them know how you would like your distribution to be used to support the University. A sample letter is available on our website.

Who should I contact at Villanova if I still have questions about the IRA Charitable Rollover?

Please contact the Office of Gift and Estate Planning at 1-800-486-5244 or Steve Grourke at 610-519-3587.

Matching Gifts

Many employers sponsor matching gift programs and will match any charitable contributions made by their employees.

If your company is eligible, request a matching gift form from your employer, and send it completed and signed with your gift. We will do the rest. The impact of your gift to our school may be doubled or possibly tripled! Some companies match gifts made by retirees and/or spouses.