By Theresa M. Schroeder, JD, Associate Director of Gift Planning

Making a gift to Carnegie Mellon from your IRA is a simple, tax-efficient way to support the University. A gift to
CMU of your distribution from your IRA qualifies for the charitable deduction, therefore allowing you to deduct from your taxable income your IRA distribution.

For the past few years, donors have been able to make a taxfree transfer of their required minimum distributions (up to $100,000 maximum) directly to the University through an act of Congress (often called the “IRA Charitable Rollover”). As of the publication of this newsletter, Congress has not renewed this provision.

However, in recent years, Congress has acted to renew the IRA Charitable Rollover by year-end and many commentators believe that Congress will renew the charitable rollover late in 2015, making all rollovers made during 2015 tax-free.

If you are considering making a gift to CMU from your IRA by the end of 2015, the uncertainty of the passage of the IRA charitable rollover for 2015 should not deter you from considering such a gift. If the IRA charitable rollover is not renewed, you may still direct a portion or all of your annual IRA distribution to CMU. The distribution will be taxed at your marginal income tax bracket; however, your gift to CMU qualifies for a charitable deduction, resulting in a tax wash for you in most cases.

Our office will keep you up to date on the status of the passage of the IRA Charitable Rollover for 2015. Meanwhile, if you are considering making a gift to CMU in 2015 from your IRA, please contact us as soon as possible and we will happily assist you and your IRA administrator with this process.