Community Foundation of New Jersey

How can I rollover my IRA?

February 6, 2013

When Congress passed legislation to avoid the fiscal cliff earlier this year, they left more than a few taxpayers confused as to what exactly happened.  We won’t attempt to explain it all, but we will try to help donors understand the portion dealing with the IRA charitable rollover.

In short, this rollover allows individuals above the age of 70 and a half to donate up to $100,000 from their IRAs to eligible charitable organizations tax-free.  The rule is in place through December 31, 2013. 

The Community Foundation of New Jersey (CFNJ) is one such eligible charitable organization but – and here’s the important part – a donor advised fund is not.

So while you cannot use the rollover to give to your own donor advised fund, you can give toward CFNJ’s unique programming in a number of areas.

Some donors are using the rollover to direct their dollars to specific communities they care about for ongoing charitable work or to help communities recover from Hurricane Sandy.

For example, our New Jersey Recovery Fund gives donors a chance to support the smart, strategic rebuilding of our state, with an emphasis on avoiding a repeat of Hurricane Sandy’s destruction.

Another opportunity is to help our scholarship funds, through which donors can have a meaningful impact on students’ lives.  Applications are soon to come in for the fall semester.

With any questions about the IRA charitable rollover or to discuss other giving opportunities, please contact CFNJ at 973-267-5533.