PRESIDENT SIGNS TAX EXTENDERS BILL, December 19, 2014
On December 19, 2014 President Obama signed H.R.5771 into law, which renews the Charitable IRA provision of 2006, making it easier for Americans to give to causes they care about. This provision has the power to help local charities strengthen their communities by allowing individuals to roll over up to $100,000 from an Individual Retirement Account (IRA) to charity without being federally taxed. This extension expires December 31, 2014.
Millions of Americans continue to save pre-tax dollars in their IRAs. The law allows taxpayers 70 ½ and older to share their wealth by giving retirement savings directly to charity—and bypassing income tax.
This law is important to local charities operating as agents of philanthropy in order to continue to build community and improve social service programs that benefit people every day. This tax benefit will expire at the end of 2014.
Special tax-free gift option for 2014
For those over age 70½, it is once again possible to make tax-favored charitable gifts from traditional and Roth IRA accounts.
On December 19 legislation was signed into law that extends this special opportunity for gifts completed in 2014. Amounts given in this way will count toward 2014 required IRA withdrawal amounts.
A total of up to $100,000 can be transferred directly from traditional or Roth IRAs to the Community Foundation of the Great River Bend free of federal income tax. There may also be state income tax savings.
To make such gifts, it is important to not withdraw funds prior to a gift, but distribute them directly from an IRA to one or more qualified charities. For those with check writing privileges on their accounts, this may be the most efficient way to make gifts directly from an IRA.
Check with us, your IRA administrator or your advisors for more information.
UPDATES ON PORTABILITY, ENDOW IOWA and IRA ROLLOVER
CLICK HERE to read Hap's December 2014 Newsletter
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