Congress Approves Tax-Favored Charitable Gifts from IRA Accounts

by | Dec 23, 2015 | News

By Teri McNally, executive director, The Community Foundation. Image courtesy of Stuart Miles at FreeDigitalPhotos.net

For those aged 70½ or older, it’s once again possible to make tax-favored charitable gifts from traditional and Roth IRA accounts.

Congress passed legislation December 18 that retroactively extends the charitable IRA rollover for 2015 and makes this provision permanent. Up to $100,000 can be transferred directly from traditional or Roth IRAs to one or more qualified charities, including The Community Foundation. Amounts given in this way are free from federal income tax and count toward required IRA minimum withdrawal amounts for the year of the gift.

A donor may direct The Community Foundation to use an IRA withdrawal gift for maximum community benefit. The foundation currently has a 1:1 gift matching opportunity available for donors supporting Youth in Philanthropy or the Community Enrichment Fund.

Alternatively, income tax-free charitable rollovers may be directed to a new or an existing named Designated Fund or Field of Interest Fund. (Note that gifts made to a donor advised fund do not qualify for special tax treatment.)

To maximize this opportunity, it’s important not to withdraw funds prior to making your gift. Instead have the gift amount distributed directly from an IRA to your chosen qualified charity. For those with check writing privileges on their accounts, this may be the most efficient way to make gifts directly from an IRA.

Contact us, your IRA administrator or tax advisor for more information.

With best wishes,
Teri McNally
540 373-9292
[email protected]

Editor’s Note: The Community Foundation of the Rappahannock Region is a non-profit organization that manages and distributes charitable giving in the region. It is based in Fredericksburg, Va.

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