Congress Makes IRA Charitable Transfers Permanent
Support Texas by making a direct gift from your IRA. It’s easy, and now is the time.
On December 18, 2015, Congress passed legislation to permanently extend the opportunity for Americans age 70½ or older to make direct transfers up to $100,000 from Individual Retirement Accounts (IRAs) to charitable organizations. You no longer have to wait until December every year to see if Congress will allow IRA transfers because they are here to stay. Now you can use this tool to make a difference at Texas at any time and save on your income tax.
Many alumni and friends have taken advantage of this opportunity to support The University of Texas at Austin since it first passed in 2006. Together, they have provided more than $17 million to support faculty experts and the brightest students who are working together to solve society’s biggest challenges.
These gifts have truly transformed UT Austin while allowing donors to give to a good cause and avoid paying income tax on their mandatory IRA distributions. You can designate your IRA gift to the people and programs you care most about at UT Austin.
How to Make IRA Transfers to UT Austin
To qualify for the IRA charitable transfer, the gift must come directly from your IRA administrator, should be made payable to The University of Texas at Austin, and mailed to:
University Development Office
Ask your IRA administrator to include your name and gift designation in the accompanying documentation. You may designate an unrestricted gift to UT Austin or give to a specific college, department, or program. If giving to a specific area, please include that information with your gift.
UT’s Tax Identification Number is 74-6000203
For the 2016 tax year, the check must be postmarked by December 31, 2016. If the IRA transfer will be made using stock or other securities, please contact Charlotte Hambrick at the University of Texas System at CHAMBRICK@utsystem.edu or (512) 499-4346 for stock transfer instructions.
Printable instructions available here.
Our Gift and Estate Planning Team is ready to answer your questions or to speak with your advisor. Call 512-475-9632, Toll-free: 800-687-4602 or email: firstname.lastname@example.org
Thank you for your generous support of The University of Texas of Austin. Because of you, What Starts Here Changes the World.
More About the IRA Charitable Transfer
Congress has permanently extended the opportunity for Americans to make direct transfers from their Individual Retirement Accounts (IRAs) to public charities for 2015 and beyond. While individuals may begin taking distributions from their IRAs as early as age 59½, they are required to begin taking them at age 70½. The mandatory distribution often creates a tax burden, even if the individual donates the money to charity. The IRA charitable transfer provision, established under the Pension Protection Act, allows those at least 70½ to donate up to $100,000 to charitable organizations directly from their IRA, without treating the distribution as taxable income.
This has the ability to help senior citizens who have often paid off their mortgage and therefore no longer file itemized returns. The provision neutralizes negative tax consequences and encourages charitable giving during one’s lifetime.
IRS Circular 230 Notice: The University of Texas at Austin does not provide legal, tax, or financial advice. Consequently we urge you to seek the advice of your own legal, tax, or financial professionals in connection with gift and planning matters. This information is not intended to be used and cannot be used for the purpose of avoiding tax-related penalties.