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Turning Required Minimum Distributions into charitable gifts

Individuals over 70½ who are currently taking Required Minimum Distributions (RMD's) from an Individual Retirement Account (IRA) are allowed to transfer distributions directly from their Custodian to the PSPCA. Gifts made with this strategy are tax-free to the donor, subject to the rules described below:

  • You must be at least 70 ½ at the time of the distribution to charity;
  • The distribution must come from an Individual Retirement Account (IRA)
    • Gifts from other retirement vehicles (such as 401(k) or 403(b) will not be tax-free but may entitle the donor to a charitable deduction;
  • An individual may transfer up to a total of $100,000 per year and a married couple may give up to $200,000;
  • As long as you have not already taken your Required Minimum Distributions for the year in which you make your gift, this transfer can count toward your required distributions for that year;
  • Your gift must be transferred directly from the IRA account to the Pennsylvania SPCA;
  • Because the transfer is tax-free to begin with, there is no charitable deduction.

For more information on how you can take advantage of the IRA Charitable Rollover to make your gift to the PSPCA, please contact Doug Nannene at 267-463-2317 or dnannene@pspca.org.