IRA Charitable Rollover
The IRA Charitable Rollover, also known as Qualified Charitable Distribution (QCD), is a terrific way to make a tax-free gift to Caltech. You can use your gift to satisfy your required minimum distribution without increasing your income taxes. If you are 70 ½ or older you can tell your IRA administrator to transfer your gift directly from your traditional IRA account to Caltech. Note: Non-IRA qualified retirement plans like 401(k) and 403(b) do not qualify, however, you may be able to transfer these funds to an IRA. Please check with your retirement plan administrator for eligibility and guidelines.
You can make a gift of up to $100,000 to satisfy the required minimum distribution from your IRA by initiating a qualified charitable distribution (QCD). The gift will not be taxed as income to you. You don’t get an income tax charitable deduction for the gift, but you don’t pay taxes on your IRA withdrawal which means the distribution is a tax-free way to make a gift.
Consider these important requirements to make an IRA Charitable Rollover, also known as Qualified Charitable Distribution (QCD):
- You must be age 70 1/2 or older when the gift is made.
- The gift must come from a traditional IRA account. (401(k), 403(b), SEP IRA accounts, and other retirement accounts do not qualify.)
- The gift must come directly from your IRA administrator to Caltech.
- Total IRA Charitable Rollover gifts in any one year cannot exceed $100,000.
- The IRA Charitable Rollover gift can count toward your Required Minimum Distribution (RMD) if you have not already taken your RMD for the year you make your gift.
- The gift from your IRA will not be available as an income tax charitable deduction.
- The gift from your IRA will be excluded from income.
How to make a gift from your IRA
- Please contact your IRA custodian (the bank or broker that holds your IRA) and request a Qualified Charitable Distribution.
- Please request they issue a check payable to Caltech, with the reference “Qualified Charitable Distribution” in the memo potion of the check and send to the address below:
California Institute of Technology
Gifts and Records/IRA Charitable Rollover
Mail Code 5-32
Pasadena, California 91125
- It is important that you verify your custodian will make the IRA Charitable Rollover check payable directly to Caltech, not withhold any taxes, and that they not report it as a regular distribution under your social security number.
- Note: Legal Name (California Institute of Technology) and Federal Tax Identification Number (95-1643307).
If you are interested in making such a gift or if you would like more information, please contact the Office of Gift Planning at 626-395-2927 or email: firstname.lastname@example.org.