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New Tax Law Extends IRA Rollover

By Dayna Ballantyne

The University of Iowa College of Nursing is at work every day providing a first-rate experience for students, faculty, alumni, practitioners, and patients—all of which is enhanced by private contributions. Gifts from generous supporters help fund everything from student scholarships to clinical programs and innovative research.

Now, if you are 70½ or older, there is a new way to make a major impact on nursing education, service, and research.

Signed into law on January 2, 2013, the American Taxpayer Relief Act of 2012 is a sweeping piece of legislation that provides potential donors the option to make charitable contributions directly from an IRA. These charitable IRA rollover gifts will not be counted in the donor’s income but and they will count towards the donor’s annual required minimum distribution for 2013. On February 14, 2013, Iowa law was coupled with federal law for the tax treatment of charitable IRA rollover gifts. (This means that these gifts do not need to be reported as taxable income on Iowa income tax returns in 2013.)

As in recent years, when similar legislation was in place, an interested supporter must be at least age 70½ at the time the gift is made, and the gift must come directly from an IRA, not from any other type of retirement plan. One benefit of the IRA charitable rollover is that distribution of funds is not counted as income, and there is no deduction taken for the gift—meaning the effect is a “tax wash.” Up to $100,000 can be transferred from an IRA directly to a qualified charity, such as the UI College of Nursing via the UI Foundation, in 2013.

We encourage you to visit with your professional financial advisor to determine if taking advantage of this legislation is right for you. In addition to the financial advantages the charitable IRA rollover provides, it also allows you to see your giving dollars at work, jumpstarting your philanthropic legacy as you watch your support shape the teaching, research, and learning taking place every day at the UI College of Nursing.

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The University of Iowa Foundation was organized in 1956 to help the university meet needs beyond those provided for by state support, and to reach new levels of distinction by generating significant private gift support. For more information, go to

NOTICE: The State University of Iowa Foundation is a 501(c)(3) tax-exempt organization soliciting tax-deductible private contributions for the benefit of the University of Iowa. Please review its full disclosure statement.

Posted On: 
Mar 6th, 2013