Your Tax-Free IRA Charitable Rollover Can Make a Difference at USC
If your retirement savings are growing successfully in tax-deferred accounts, you can reduce your taxable income by making a donation to USC.
In 2015, Congress made the IRA charitable rollover provisions permanent. That means you don’t have to wait until December to make tax-free gifts from your IRA to support USC.
Once you reach age 70½, whether you need the funds to support your retirement needs or not, you must withdraw the required minimum distribution (RMD) from your IRA each year and pay income taxes on the entire amount.
Donating to USC directly from your IRA decreases your income and, as a result, lowers your tax liability—a significant financial benefit for you and your family. Please note that charitable deductions are not permitted for this type of gift.
Here’s how it works:
- You must be at least 70½ years old at the time of distribution.
- Individuals can donate up to $100,000.
- Couples with separate IRA accounts can give up to $200,000.
- Your IRA account administrator must make your gift directly to USC.
Taking advantage of these IRA provisions now will give you peace of mind that your gift will be executed before year’s end. And you can take pride in knowing that you are supporting USC’s outstanding students, faculty, physicians and programs.
Contact your IRA administrator today to make your gift. To learn more and to receive a sample distribution letter, contact the USC Office of Gift Planning at (213) 740-2682 or firstname.lastname@example.org. You can also visit our website at www.usc.edu/giftplanning.
This information is not intended to serve as legal advice, for which you should consult an attorney. Please also note that references to estate and income taxes apply to federal taxes only. State income and estate taxes, and/or state law, may impact your results as well.