IRA Charitable Rollover

At the end of 2015 a package of tax changes were made permanent. One of those provisions may be of particular interest to supporters of Caltech. If you are required to take more out of your IRA each than you would like, consider this giving opportunity.

The IRA charitable rollover 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. (401(k), 403(b), SEP IRA accounts, and other retirement accounts do not qualify.)

You can make a gift of up to $100,000 to satisfy the required minimum distribution from your IRA. 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 IRA charitable rollover is a tax-free way to make a gift.

Consider these important requirements to make an IRA charitable rollover:

  • 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 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 their forms to complete a “Charitable IRA Rollover Distribution” to Caltech.
  • Please request they issue a check payable to Caltech at the address below and reference “Charitable IRA Rollover” in the memo portion of the check. 

                   California Institute of Technology
                   Office of Gift Planning
                   Mail Code 5-32
                   Pasadena, California 91125
                   Attn: Oliver Mueller, IRA Rollover

  • It is important that you verify your custodian will make the charitable IRA 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.

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: giftplanning@caltech.edu.