The IRA Charitable Rollover was made permanent for 2015 and beyond through a provision of the “Protecting Americans from Tax Hikes Act of 2015.”

This allows people age 70½ or older to make direct transfers up to $100,000 per year to charitable organizations from their Individual Retirement Accounts, without the withdrawal being treated as taxable income.

From which accounts can I make transfers?

Transfers must come from your Individual Retirement Account(s) directly to the Catholic Charities of the Archdiocese of Galveston Houston. The Charitable Rollover does not apply to 401(k), 403(b), or other retirement plans.

To which organizations can I make gifts?

You may make gifts to tax-exempt, 501(c)(3) organizations, including Catholic Charities of the Archdiocese of Galveston Houston.

How do I make an IRA Charitable Rollover?

Contact the financial institution that holds your IRA about how to instruct them to make a direct charitable transfer. You may instruct them to make a distribution to Catholic Charities of the Archdiocese of Galveston Houston, 2900 Louisiana St. Houston, Texas 77006, Tax ID# 74-1109733. Also see our sample letter of instruction. Please also notify us so we can properly acknowledge your gift.

What are the tax implications?

  • Federal — The transfer is not recognized as a taxable withdrawal from your IRA, and does not afford you an income tax charitable deduction. The withdrawal can be counted toward your “required minimum distribution.”
  • State — Tax laws vary by state. Some states have a state income tax and will include the transfer as income. Of those, some will allow for a state income tax charitable deduction and others will not. Other states base their state income tax on the federal income or federal tax paid.

Please note: This information is not intended as tax or legal advice. We recommend that you consult with your legal and financial advisors to learn how a gift would work in your circumstances. Laws and regulations governing all gifts and availability of certain life income gifts vary by state.

Contact

To get started or request more information, please contact us at bequests@catholiccharities.org or 713.874.6624.

EIN: 74-1109733