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Make a Gift Tax-Free With an IRA

A Tax-Saving Way to Help The University of Alabama

If you are 70½ years old or older, you can take advantage of a simple way to benefit The University of Alabama and receive tax benefits in return. You can give any amount up to $100,000 from your IRA directly to a qualified organization such as The University of Alabama without having to pay income taxes on the money.

This law no longer has an expiration date so you are free to make annual gifts to the University this year and well into the future. It is simple to make a transfer. Contact your account administrator to request a check be delivered to the address below.

The University of Alabama
Tax Identification #63-6001138
Attn: Office of Planned Giving
Box 870123
Tuscaloosa, AL 35487
(205) 348-0999
(888) 875-4438 TOLL FREE
plannedgiving@advance.ua.edu

To help us record and acknowledge your gift in a timely manner, please contact the Office of Planned Giving to provide the following information about the IRA distribution:

1. Purpose of the gift (i.e. the name of the University fund into which the gift should be deposited);
2. Name of the financial institution sending the check; and
3. Amount of the distribution.

Why Consider This Gift?

  • Your gift will be put to use today, allowing you to see the difference your donation is making for our students and programs.
  • You pay no income taxes on the gift. The transfer generates neither taxable income nor a tax deduction, so you benefit even if you do not itemize your deductions.
  • If you have not yet taken your required minimum distribution for the year, your IRA charitable rollover gift can satisfy all or part of that requirement.

Frequently Asked Questions

Q. I've already named The University of Alabama as the beneficiary of my IRA. What are the benefits if I make a gift now instead of after my lifetime?
A. By making a gift this year of up to $100,000 from your IRA, you can see your gift at work. You are jump-starting the legacy you would like to leave and giving yourself the joy of watching your philanthropy take shape. Moreover, you can fulfill any outstanding pledge you may have made by transferring that amount from your IRA as long as it is $100,000 or less for the year.

Q. I'm turning age 70½ in a few months. Can I make this gift now?
A. No. The legislation requires you to reach age 70½ by the date you make the gift.

Q. I have several retirement accounts—some are pensions and some are IRAs. Does it matter which retirement account I use?
A. Yes. Direct rollovers to a qualified charity can be made only from an IRA. Under certain circumstances, however, you may be able to roll assets from a pension, profit sharing, 401(k) or 403(b) plan into an IRA and then make the transfer from the IRA directly to The University of Alabama. To determine if a rollover to an IRA is available for your plan, speak with your plan administrator.

Q. Can my gift be used as my required minimum distribution under the law?
A. Yes, absolutely. If you have not yet taken your required minimum distribution, the IRA charitable rollover gift can satisfy all or part of that requirement. Contact your IRA custodian to complete the gift.

Q. Do I need to give my entire IRA to be eligible for the tax benefits?
A. No. You can give any amount under this provision, as long as it is $100,000 or less this year. If your IRA is valued at more than $100,000, you can transfer a portion of it to fund a charitable gift.

Q. I have two charities I want to support. Can I give $100,000 from my IRA to each?
A. No. Under the law, you can give a maximum of $100,000. For example, you can give each organization $50,000 this year or any other combination that totals $100,000 or less. Any amount of more than $100,000 in one year must be reported as taxable income.

Q. My spouse and I would like to give more than $100,000. How can we do that?
A. If you have a spouse (as defined by the IRS) who is 70½ or older and has an IRA, he or she can also give up to $100,000 from his or her IRA.

It is wise to consult with your tax professionals if you are contemplating a charitable gift under the extended law. Please feel free to contact W. Vance Bristow at 205-348-4770 or vbristow@advance.ua.edu with any questions you may have.