IRA Charitable Rollover provisions made permanent

logo-homepageLast week, President Obama signed the Protecting Americans from Tax Hikes (PATH) Act into law.  Included in the bi-partisan legislation were several important charitable giving tax incentives, which the legislation made permanent.

Most important of the charitable tax incentives is the permanent extension of the IRA Charitable Rollover.

Now that the Individual Retirement Account (IRA) charitable rollover has been permanently extended by Congress, you may wish to consider making a gift of IRA assets to United Way. This tax provision allows American taxpayers ages 70 ½ and older to donate up to and including $100,000 for 2015, and every future year, from their IRAs without having to treat the withdrawals as taxable income.

Your IRA charitable contribution will help improve lives in our community.

As a tax free qualified charitable distribution, IRA charitable rollovers are an attractive way to make an annual end of year gift to United Way. Individuals can;

  • rollover up to and including $100,000 of their IRA directly to United Way,
  • without recognizing the transferred assets as taxable income, and
  • the distribution satisfies the required minimum distribution rules.

A few other considerations to keep in mind:

  • Eligible Charities IRA Charitable contributions must go directly to a public charity like United Way that is not a supporting organization.
  • Eligible Retirement Accounts Distributions can only be made from traditional IRAs or Roth IRAs.
  • Directly to the Charity Distributions must be made directly from the IRA trustee payable to United Way or a public charity.
  • Written Receipt United Way will furnish donors with written substantiation of each IRA rollover contribution so that the donor benefits from the tax-free treatment.
  • Donation The taxpayer does not take a charitable donation deduction.
  • No Gifts in Return Donors cannot receive any goods or services in return for charitable IRA rollover contributions in order to qualify for tax-free treatment.

For more information, please contact John Kelker.