Making IRA Transfer to Texas Law is a Win-Win
If you are 70½ years old or older, you can take advantage of a simple way to benefit your law school and receive tax benefits in return. You can give up to $100,000 from your IRA directly to a qualified charity such as ours without having to pay income taxes on the money.
This law no longer has an expiration date so you are free to make gift to our organization this year and well into the future. Many of our donors have found the IRA charitable gift transfer to be a convenient and tax-wise way to make an annual gift, make a pledge payment or even use to create an endowed scholarship.
Why Consider This Gift?
Your gift will be put to use today, allowing you to see the difference your donation is making.
You pay no income taxes on the gift. The transfer generates neither taxable income nor a tax deduction, so you benefit even if you do not itemize your deductions.
If you have not yet taken your required minimum distribution for the year, your IRA charitable transfer gift can satisfy all or part of that requirement.
Frequently Asked Questions
Q. I’m turning age 70½ in a few months. Can I make this gift now?
A. No. The legislation requires you to reach age 70½ by the date you make the gift.
Q. I have several retirement accounts—some are pensions and some are IRAs. Does it matter which retirement account I use?
A. Yes. Direct rollovers to a qualified charity can be made only from an IRA. Under certain circumstances, however, you may be able to roll assets from a pension, profit sharing, 401(k) or 403(b) plan into an IRA and then make the transfer from the IRA directly to The University of Texas Law School Foundation. To determine if a rollover to an IRA is available for your plan, speak with your plan administrator.
Q. Can my gift be used as my required minimum distribution under the law?
A. Yes, absolutely. If you have not yet taken your required minimum distribution, the IRA charitable rollover gift can satisfy all or part of that requirement. Contact your IRA custodian to complete the gift.
Q. Do I need to give my entire IRA to be eligible for the tax benefits?
A. No. You can give any amount under this provision, as long as it is $100,000 or less this year. If your IRA is valued at more than $100,000, you can transfer a portion of it to fund a charitable gift.
Q. My spouse and I would like to give more than $100,000. How can we do that?
A. If you have a spouse (as defined by the IRS) who is 70½ or older and has an IRA, he or she can also give up to $100,000 from his or her IRA.
To Qualify for a Charitable Gift Transfer:
· The gift must come directly for your IRA Administrator
· The gift should be made payable to The University of Texas Law School Foundation
· The gift should be mailed to The University of Texas Law School Foundation at 727 East Dean Keeton, Austin, Texas 78705
The University of Texas Law School Foundation / Tax ID # 74-6056794
It is wise to consult with your tax professionals if you are contemplating a charitable gift transfer from your IRA. Please feel free to contact David Onion at 512-471-5720 or at Onion@law.utexas.edu with any questions you may have.