Dr. Carol Swarts made a direct transfer from her IRA to support the University of Nebraska

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Fiscal cliff deal revives the IRA charitable rollover for 2013

vie, nov 1, 2013

Carol Swarts grew up barefoot in the Sandhills during the Depression.

“We had nothing,” she says.

But the University of Nebraska gave her the opportunity and tools to pursue her passion of becoming a physician.

“It just helps me appreciate the needs of some of our potential students,” says Dr. Swarts, a graduate of both UNL and UNMC. “Everyone should have access to education to achieve their dreams, and this is my way of giving back.”

Dr. Swarts learned to save and live within her means. Her gift to the university through her IRA was part of that. She knew she wanted to make a gift and decided to make a direct transfer from her IRA in the hopes the IRA charitable rollover would be reinstated.

And it was. The recent fiscal cliff deal revived the IRA charitable rollover for 2013 and retroactively for 2012.

Now University of Nebraska donors like Dr. Swarts who are at least 70 ½ can transfer up to $100,000 directly from an IRA to charity without realizing any income on the transfer for federal income tax purposes. (Donors do not get a charitable income tax deduction.)

Several options are available for the newly reinstated rollover provision, all subject to a maximum of $100,000 per year.

IRA owner must be 70 ½ or older.
Transfer may not exceed $100,000 each year.

The transfer qualifies for the required minimum distribution.

Distribution must be directed to a public charity either outright or for a specific purpose.

Distribution cannot be made to a donor advised fund or supporting organization.

Transfers must come directly from an IRA trustee to the charitable organization.

Here’s how you can take advantage of this opportunity:

Step 1: Contact your IRA plan administrator.

Step 2: Send a written request to your IRA plan administrator requesting that the distribution be made payable to the University of Nebraska Foundation. (View sample request form PDF.)

Step 3: Contact Megahn Schafer, senior director of gift planning at the University of Nebraska Foundation at 800-432-3216 or 402-458-1100 to notify us of the gift and plan administrator name. (View sample notification letter PDF.)

Step 4: Designate your gift. You may wish to make a designation to a particular campus, department or program.

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