IRA Charitable Rollover

A gift of retirement plan assets can be a surprisingly easy way to reduce potentially very high taxes and provide support to Caltech.

A gift of retirement plan assets could be right for you if:

• You have an IRA or qualified retirement plan.
• You do not expect to use all of your retirement plan assets during your lifetime.
• You have other assets, such as securities and real estate, that you want to pass to heirs.
• You may want to provide payments to loved ones after you are gone.
• You would like to make a bequest gift to Caltech.

If you are at least 70 ½ years old, you can make a tax-free gift from your IRA (other qualified retirement plans such as 401(k)s and 403(b)s are not eligible). 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 do not get an income tax charitable deduction for the gift, but you do not pay taxes on your IRA withdrawal which means the distribution is a tax-free way to make a gift.

The benefits of an IRA charitable rollover gift, also known as Qualified Charitable Distribution (QCD), include:

1. If you don’t itemize deductions and are not yet required to take your RMD, a QCD offers all of the benefits of an itemized income tax charitable deduction.
2. If you are age 72 or older and must take your RMD, a QCD can satisfy your RMD without increasing your income taxes.
3. Avoids income tax on IRA withdrawals.
4. Supports the important work of Caltech with a tax-free gift.

If you are interested in making such a gift or would like more information, please contact: