Great News! IRA Rollover Provision Extended

The IRA Charitable Rollover provision of the Pension Protection Act of 2006 was extended through 2011.

Benefits of an IRA gift include that:

  • You may give up to $100,000 without the distribution being included in taxable income (i.e., it is excluded from the donor's gross income).
  • Your gift can support the Colby Fund or another important Colby initiative of your choice.
  • You can make a gift to Colby without affecting your own cash flow.
Required Minimum Distribution:
A gift of IRA assets may lower your Required Minimum Distribution (RMD), so this remains a great way to help Colby and help yourself.

How do I make this happen?

  • To take advantage of this opportunity to support Colby, please call your IRA plan administrator to arrange for a direct transfer.
  • You must instruct the trustee to distribute the funds directly to a public charity, such as Colby.
  • Donors who transfer funds from an IRA should notify Colby's  Office of Gift Planning of their transfer, since the transfers are anonymous and Colby will have no way of identifying the gift without this information.
  • Colby will provide appropriate documentation concerning its status as a qualified charity and acknowledgement of your gift.
  • If you need assistance or wish to get more information from the College, contact Susan Cook ’75 in the Office of Gift Planning by telephone at 1-800-809-0103 or by e-mail at giftplanning@colby.edu.
Sample Letters for IRA transfers to Colby
Sample letters for you to send to your plan administrator are available by clicking HERE.

Please review these rules to make sure your gift will qualify: 
  • You must be 70.5 years of age or older at the time of the gift.
  • Your IRA rollover gift must be made to a qualified charity.
  • The transfer must go directly from your IRA to a qualified charity and cannot fund life income arrangements such as gift annuities or trusts.
  • Your IRA rollover gifts cannot exceed $100,000 per tax year.
  • The amount rolled over from your IRA will be excluded from your gross income.
  • There is no federal income tax deduction for the IRA rollover gift.
  • Gifts from retirement accounts other than IRAs—such as 401k, 403b, and SEP accounts—are not eligible.
  • Donors may be able to make qualified transfers of money from other accounts to their IRA and then make a charitable gift from their IRA. Please check with your tax advisor.

 
       
Judy '54 and Frank Totman '53
"I have always supported the Colby Fund, and through the continued IRA provision I was able to use my retirement account to make a gift without paying the income tax first. It just seemed like a wonderful way to make this gift."
—Judy Jenkins Totman '54