Frequently Asked Questions
What is a charitable IRA rollover?
The charitable IRA, or qualified charitable distribution, is a special provision allowing donors age 70.5 or older to transfer assets from their IRA directly to a public charity—like the Texas A&M Foundation. This distribution gift is excluded from taxable income and counts toward a donor’s required minimum distribution (RMD). Many donors have used this popular giving option to support Texas A&M with gifts ranging from $100 to $100,000.
How do I make a charitable IRA rollover gift?
Contact your IRA administrator and request to have the gift amount distributed directly from your IRA to the Texas A&M Foundation and/or other charities of your choice. If you have check writing privileges on your IRA account, this may be the most efficient way to make your gift directly from your IRA. Remember, when making a charitable IRA rollover gift, you should not withdraw the funds yourself prior to making the gift; otherwise it will be taxed as income.
Is there a limit on the amount that can be given?
Yes, there is a limit. An individual taxpayer’s total charitable IRA rollover gifts cannot exceed $100,000 per tax year.
What about my required minimum distribution?
If you have not already taken your required minimum distribution in a given year, a qualifying rollover gift can count toward satisfying this requirement. If you are set up to automatically receive your RMD each year, you may want to turn off the payment and instead request two distributions: the QCD and any remaining RMD amount. For example, if an individual is automatically set to receive a $25,000 RMD, they could stop the automatic distribution and request two distributions: a $10,000 distribution directly to Texas A&M Foundation, and a $15,000 regular distribution. Together, these will have satisfied the RMD requirement for the year.
Can a rollover gift be used to fund a charitable remainder trust or charitable gift annuity?
No. A donor can receive no benefits in return for the gift.
Is a charitable IRA rollover right for everyone?
While this is a great option, other types of gifts may be more advantageous for certain situations. As with any gift planning question, donors should consult their professionals for specific advice.
Can I still make a gift with an IRA beneficiary designation?
Of course! Whether or not you choose to make a charitable IRA rollover gift, you can still designate the Texas A&M Foundation as a beneficiary to receive IRA assets after your lifetime. The lifetime charitable IRA rollover is simply another option for donors who would like to see their philanthropy at work now.
FOUR WAYS TO SUPPORT STUDENTS IN THE CORPS
Keepers of the Spirit Scholarships are awarded to cadets who aspire to the highest scholastic and leadership standards. You can fund a Keepers of the Spirit Scholarship with a $500,000 endowment, which will annually fund four scholarships for cadets in each class year. Recipients must maintain a minimum 3.2 overall grade point average (GPA). These scholarships defray the cost of tuition and expenses by $20,000 to $25,000 over four years.
Corps of Cadets 21st Century Scholarships ensure that future generations of our nation’s leaders continue to come from Texas A&M. Recipients of this scholarship must maintain a minimum 3.0 overall grade point average (GPA). You can fund a Corps 21 Scholarship with a $100,000 endowment* and defray the cost of tuition and expenses by $16,000 to $18,000 over four years.
General Rudder Corps Scholarships encourage outstanding students with a high potential for success to commit to learning leadership in the Corps. Recipients of this scholarship must maintain a minimum 2.5 overall grade point average (GPA). You can fund a General Rudder Corps Scholarship with a $50,000 endowment* and defray the cost of tuition and expenses by $8,000 to $10,000 over four years.
Sul Ross Scholarships are awarded to deserving students with financial need. Recipients of this scholarship must maintain a minimum 2.3 overall grade point average (GPA). You can fund a Sul Ross Scholarship with a $25,000 endowment* and defray the cost of tuition and expenses by $4,000 to $4,800 over four years.
