IRA charitable rollover for 2015
Congress has just extended the IRA charitable rollover for 2015 and beyond.
Here is a recap of the IRA charitable rollover rules. Your donor can make a direct transfer if:
- The donor is age 70½ or older on the day of the gift.
- The donor transfers up to $100,000 directly from the donor’s IRA to one or more qualified charities. This opportunity applies only to IRAs and not to other types of retirement plans.
- The donor pays no income tax on the gift. The transfer generates neither taxable income nor a tax deduction, so your donors benefit even if they do not itemize their tax deductions.
- The gift can satisfy all or part of the required minimum distribution for the year.
- The gift may not be used to fund a gift annuity, charitable remainder trust, donor advised fund or private foundation.
- The donor does not receive any goods or services in return for the rollover gift in order to qualify for tax-free treatment.
- If your donor made a gift of up to $100,000 directly from an IRA in 2015, the gift will qualify under the new law.
- The new legislation does not have an expiration date. Your donors can make gifts in 2015 and beyond.