On December 17, 2010, the President signed into law The Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010. This bill restores the IRA Charitable Rollover for 2010 and permits its use in all of 2011. The act is retroactive to January 1, 2010, so donors who previously made 2010 IRA rollovers will qualify.
The principal rules for direct transfers from an IRA to a qualified public charity are that the IRA owner must be 70½ or older and that the transfer is for no more than $100,000 each year. It must be to a public charity either outright or for a specific purpose, but may not be to a donor advised fund or supporting organization. The transfer is made directly from a custodian or trustee to the charitable organization.
IRA Rollover email to Custodian
Donors and clients may use the following sample email text to notify their custodian. Donors can check the gift planning portion of the website or email their charity for the specific information. Many banks and other custodians will require use of their forms, but an email to them is the quickest way to start the process. If the custodian responds by emailing a form to a donor, he or she may print, sign and fax it back to the custodian the same day.
Example email to Custodian
Dear IRA Custodian,
The Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010, effective from Jan. 1, 2010 to Dec. 31, 2011, permits a rollover directly from an IRA to a qualified public charity. As the owner of IRA account #_________________ that is in the custody of your organization, I request that you transfer from that account the sum of $_________________ to my favorite charity _________________ located in city _______________ with state and zip code _______________. The Treasury Tax ID Number for my favorite public charity is _________________________.
It is my intention to make a Qualified Charitable Distribution (QCD) to this charity from my IRA, which may fulfill part or all of my IRA required minimum distribution for this year.
This letter is sufficient authorization for you to make this QCD gift. However, if you require any further documents, please promptly email those to me.