The IRA Charitable Rollover of past years was made permanent on December 18th.
Donors who are age 70-1/2 and older are able to make donations to charity from their IRA without needing to claim that distribution as income.
This provision has been available in years past but was just signed into law on a permanent basis on December 18, 2015, and is retroactive to January 1, 2015.
This is an excellent opportunity for Grundy residents to establish a new fund at the Community Foundation of Grundy County to fulfill your charitable goals. Transfers from IRAs can fund field of interest funds, designated funds, scholarship funds, and agency endowments. This provision does NOT allow transfers to Donor Advised Funds.
Here is a recap of the IRA charitable rollover rules. You can make a direct transfer if:
- You are age 70½ or older on the day of the gift.
- You transfer up to $100,000 directly from your IRA to one or more qualified charities. This opportunity applies only to IRAs and not to other types of retirement plans.
- You pay no income tax on the gift. The transfer generates neither taxable income nor a tax deduction, so you benefit even if you do not itemize your tax deductions.
- The gift can satisfy all or part of your required minimum distribution (RMD) for the year.
- The gift may not be used to fund a gift annuity, charitable remainder trust, donor advised fund, or private foundation.
- You cannot receive any goods or services in return for the rollover gift in order to qualify for tax-free treatment.
- If you make 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. You can make gifts in 2015 and beyond.
To transfer a gift from your IRA, please contact your IRA administrator directly. To create a new (or add to an existing) fund at the Community Foundation of Grundy County, please call Julie at 815-941-0852 or [email protected]