IRA Gift Opportunities - IRA Charitable Rollover Law - Lyric Opera of Chicago

IRA Rollover Tax Alert

On January 1, 2013, the IRA Rollover Law was re-enacted by Congress, retroactively for 2012, and for 2013.  The new law allows individuals to again make tax-free IRA rollover donations by December 31, 2013.

Normally, all IRA withdrawals are taxable to you (whether taken as a required minimum distribution from your IRA or from your other IRA funds).  However, anyone age 70 1/2 and older can again make tax-free IRA rollover gifts to Lyric Opera in 2013 of up to $100,000.  These gifts can be in lieu of your IRA minimum required distributions in 2013, which you would roll over to charity rather than withdrawing.  There is no tax imposed on these IRA rollover gifts to charity (and no charitable deduction or donor benefits allowed for these kinds of gifts).  

The IRA rollover law is a unique opportunity, for those who do not itemize their deductions, to make a charitable gift tax-free.  Since a charitable gift can only be taken as an itemized deduction from your income tax, those who do not itemize were never able to take advantage of the charitable deduction.  But if you use your IRA to make a gift to Lyric, you will not have to pay any tax on your IRA withdrawal, even if you don’t itemize.   

By using your IRA to make gifts now, you can prepay existing pledges you have with Lyric Opera, and avoid the IRA withdrawal tax.  Or you can prepay gifts you may wish to make to Lyric in the future, and still procure the same tax-free benefits now.  

This law was recently re-enacted by Congress. You can again directly roll over your IRA funds – tax free – as a gift to Lyric Opera any time prior to December 31, 2013.  Simply contact your IRA fund administrator for the applicable rollover forms, or call Lyric’s planned giving office for details. 

For further information about IRA gift opportunities to Lyric, feel free to call Lyric Opera’s Director of Planned Giving, Jonathan Siner at (312) 827-5677 or email him at .