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Tax-Free IRA Distribution

The Protecting Americans From Tax Hikes Act of 2015 makes permanent the provision allowing tax-free distributions from individual retirement accounts (IRA) to public charities, by individuals age 70 ½ or older, up to a maximum of $100,000 per taxpayer per year. The IRA charitable rollover was also made retroactive to January 1, 2015.

NEST is a qualified charity under the Act and may receive these IRA distributions. Eligible donors are encouraged to support NEST’s mission via this gift opportunity.

Donors must be at least age 70 ½ at the time of the distribution. In addition, the distribution is to be made directly from your IRA account to NEST as coordinated by your fund/account administrator. The amount distributed will not be included in the donor’s federal taxable income and will count toward the required minimum distribution amount. This gift method does not apply to SEP or Simple IRAs, or to 401(k), 403(b), and Keogh accounts, nor may the distributions be used to establish a planned gift.

Donors will be recognized under NEST’s donor recognition program at the level commensurate with their gift(s). Prospective donors or their financial advisors are encouraged to use this Sample Letter when contacting their IRA plan administrator to initiate a qualified charitable distribution from an IRA account. For tax purposes, donors will receive a written acknowledgment for their qualified charitable distribution.

If you have questions about the IRA charitable rollover please call the NEST office at 206.525.6378.

NEST encourages you to consult with independent legal and/or tax advisors of your choice regarding tax-free IRA distributions, so as to ensure you receive a full and accurate explanation of all aspects of this manner of donating to NEST. NEST cannot provide legal or tax advice to you as the donor.

Thank you very much for your support of NEST!