Gift Planning

Current Gifts from Retirement Funds

Make a current gift from retirement funds during your lifetime.

Making your gift from retirement funds can offer significant tax and planning advantages by withdrawing funds yourself and taking an offsetting deduction in the same tax year, or by making a qualified charitable distribution. Either method counts toward distribution requirements (RMD) and gets assets out of the estate.

There is no set limit for withdrawing money from a retirement account, recognizing for income tax, and taking an offsetting deduction beyond the IRS deduction limitation of 60% of adjusted gross income. Gifts made using retirement funds that the donor has recognized for tax can be used to establish a charitable gift annuity or charitable trust. See Create Income Now for information on gifts that provide income benefits.

Qualified charitable distributions (IRA charitable rollovers) bypass recognition for income tax of up to $100,000 per year from an IRA, which may be attractive to non-itemizers.

Donors should consult with their tax advisors to understand how retirement funds may be used for charitable giving for their situation.


Qualified Charitable Distribution from an IRA

Gifts from your Individual Retirement Account can be given to an eligible charitable organization, like Princeton.

Up to $100,000 of the gift is excluded from your gross income for tax purposes. These gifts also apply to your required minimum distribution.

How it works:

  1. You make a distribution directly from an IRA to Princeton by December 31.
  2. The distribution counts toward your required minimum distribution.

Are you eligible?

  • You are at least 70½ years of age
  • The distribution must otherwise be included in gross income
  • The distribution must otherwise be fully deductible as a charitable contribution.

Benefits

  • Up to $100,000 is removed from your gross income for income tax purposes.*
  • The distribution counts toward your required minimum distribution.

Could a charitable distribution from an IRA work for you? Please contact us.

PDF iconSee Sample Transfer Instructions for Check or Wire Transfer

*Certain IRS limitations apply. The information presented is not intended as legal or financial advice. Please consult your own professional advisors to discuss your specific situation.


Information for Estate Attorneys and Administrators

Our legal name is: Trustees of Princeton University
Our tax ID number is: 21-0634501
Our address and contact information for estates and trusts is:
Office of the General Counsel
Princeton University
New South Building, Fourth Floor
Princeton, NJ 08544
609.258.2500


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