Charitable IRA Rollover Distributions

Qualifying donors can make tax-free IRA distributions by making a special gift to Michigan 4‑H.

Donors aged 70½ years and older may donate up to $100,000* tax-free from their IRA each year to a qualified 501(c)(3) nonprofit, such as the Michigan 4-H Foundation (federal tax ID #38-1539997).

To be eligible, the IRA trustee or custodian must make the distribution directly to the charity. If you are required to take minimum distributions (RMD), you can use your gift to satisfy all or part of your obligation. 

Remember, this opportunity ends Dec. 31 for current year tax credit.

Next Steps:

• Instruct your IRA custodian to distribute a gift amount directly to the Michigan 4-H Foundation. The entire gift amount qualifies as a charitable distribution.
• The gift amount is not included in your personal income for federal taxes.
• The gift amount can count toward the required minimum distribution (RMD) for the tax year.
• Distribution cannot be considered an income tax charitable deduction. The gift is considered a tax-free gift because the donor doesn’t pay taxes on the distribution if it’s made directly to a charity.
• Distributions can be made only from traditional individual retirement accounts or Roth IRAs. Typically, 403(b), 401(k), pension and other retirement plans are ineligible for the tax-free distribution.

Please contact Abbey Miller at abmiller@msu.edu or call 517-353-4433 to discuss your gift and provide any additional information you need. 

Note: Your IRA administrator must remove the funds from your account by Dec. 31 for your donation to qualify for the tax year. If you have check-writing features on your IRA, your check must clear your account by Dec. 31 to count toward your required minimum distribution for the calendar year.

*Amount to increase annually due to inflation.