December 22, 2014

What You Need to Know About Charitable IRA Rollovers in 2014

President Barack Obama has signed House Resolution 5771 into law. Among the other provisions in this bill, the IRS benefit for charitable Individual Retirement Accounts (IRAs) rollover has been extended through Dec. 31, 2014.

What does this mean for you?

  • With the charitable IRA rollover, people aged 70½ and older are able to transfer up to $100,000 of IRA assets from IRA administrator directly to an IRS-recognized nonprofit organization, such as the Community Foundation for the Greater Capital Region, by December 31, 2014. (Married couples can each transfer up to $100,000 from their IRAs.)
  • As long as assets are transferred directly from the IRA to the nonprofit organization, they will not be taxed.

Don’t forget:

  • You have until December 31, 2014, to transfer IRA funds to a nonprofit organization.
  • Only IRA withdrawals qualify for IRA charitable rollover treatment. Withdrawals cannot come from any other type of retirement plan, and they will not qualify for any additional charitable deduction.
  • Charitable IRA rollovers cannot be made to supporting organization funds, donor advised funds, charitable gift annuities, charitable remainder trusts or private foundations.

Please contact your financial advisor for more information, or to arrange a transfer. You may also call Mindy Derosia at the Community Foundation at (518) 446-9638 to discuss charitable gifts from your IRA.