Gift Planning at The University of Texas at Austin
Make a Gift Tax-Free With an IRA
Make a difference today and save on taxes. It’s possible when you support The University of Texas at Austin through your IRA.
A Special Opportunity for Those 70½ Years Old and Older
You can give any amount (up to a maximum of $100,000) per year from your IRA directly to a qualified charity such as The University of Texas at Austin without having to pay income taxes on the money. Gifts of any value $100,000 or less are eligible for this benefit and you can feel good knowing that you are making a difference at the University. This popular gift option is commonly called the IRA charitable rollover, but you may also see it referred to as a qualified charitable distribution, or QCD for short.
Why Consider This Gift?
- Your gift will be put to use today, allowing you to see the difference your donation is making.
- Beginning in the year you turn 72, you can use your gift to satisfy all or part of your required minimum distribution (RMD).
- You pay no income taxes on the gift. The transfer generates neither taxable income nor a tax deduction, so you benefit even if you do not itemize your deductions.
- Since the gift doesn’t count as income, it can reduce your annual income level. This may help lower your Medicare premiums and decrease the amount of Social Security that is subject to tax.
Frequently Asked Questions
No. The legislation requires you to reach age 70½ by the date you make the gift.
Yes. Direct gifts to a qualified charity can be made only from an IRA. Under certain circumstances, however, you may be able to roll assets from a pension, profit sharing, 401(k), or 403(b) plan into an IRA and then make the transfer from the IRA directly to The University of Texas at Austin. To determine if a rollover to an IRA is available for your plan, speak with your plan administrator.
Yes, absolutely. Beginning in the year you turn 72, you can use your gift to satisfy all or part of your RMD.
No. You can give any amount under this provision, as long as it is no more than $100,000 per year. If your IRA is valued at more than $100,000, you can transfer a portion of it to fund a charitable gift.
We must receive your gift by Dec. 31 for your donation to qualify this year. If you have check-writing privileges on your IRA, please mail your check by Dec. 18 in order to give us time to process your gift before the end of the year.
No. Under the law, you can give a maximum of $100,000 per year. For example, you can give each organization $50,000 this year or any other combination that totals $100,000 or less. Any amount of more than $100,000 in one year must be reported as taxable income.
If you have a spouse (as defined by the IRS) who is 70½ or older, they can also give any amount up to $100,000 from their IRA.
Unfortunately, the law does not permit using a qualified charitable distribution to establish a charitable gift annuity or a charitable remainder trust.
By making a gift this year of any amount up to $100,000 from your IRA, you can see your philanthropic dollars at work. You are jump-starting the legacy you would like to leave and giving yourself the joy of watching your philanthropy take shape. Moreover, you can fulfill any outstanding pledge you may have made by transferring that amount from your IRA as long as it is $100,000 or less for the year.
For Those 59½ Years Old or Older
If you’re at least 59½ years old, you can take a distribution and then make a gift from your IRA without penalty. If you itemize your deductions, you can take a charitable deduction for the amount of your gift.
At Any Age
No matter your age, you can designate The University of Texas at Austin as the beneficiary of all or a percentage of your IRA and it will pass to us tax-free after your lifetime. It’s simple, just requiring that you contact your IRA administrator for a change-of-beneficiary form or download a form from your provider’s website.
Tip: It’s critical to let us know of your gift because many popular retirement plan administrators assume no obligation to notify a charity of your designation. The administrator also will not monitor whether your gift designations are followed. We would love to talk to you about your intentions to ensure that they are followed. We would also like to thank you for your generosity.
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Next Steps to Give UT an IRA Qualified Charitable Distribution (QCD)
- Use our tool Take Action! Give From Your IRA to connect to your retirement provider.
- Contact the Gift and Estate Planning Team at 512-475-9632 or email@example.com to notify us to expect your IRA gift. Seek the advice of your financial or legal adviser.
- Ask your IRA administrator about making a direct transfer to the University or have the administrator send a check from your account to us. (To be tax free, the donation must go directly from your account to the University without passing through your hands.)
- Review UT Austin IRA Qualified Charitable Distribution Instructions.
Legal name: The University of Texas at Austin
Legal address: P.O. Box 7458
Austin, TX 78713
Federal tax ID number: 74-6000203
Next Steps to Make UT a Beneficiary of Your IRA & Make a Gift From Your Estate
- Contact the Gift and Estate Planning Team at 512-475-9632 or firstname.lastname@example.org to receive additional guidance and to discuss where you would like to direct your support. Seek the advice of your financial or legal adviser.
- Contact your IRA administrator for a change-of-beneficiary form or download a form from your provider’s website. Use the following for the beneficiary update.
Legal name: Board of Regents of The University of Texas System for the benefit of The University of Texas at Austin
Legal address: P.O. Box 7458
Austin, TX 78713
Federal tax ID number: 30-0710145