The United States Congress has made the IRA charitable rollover permanent as part of the Protecting Americans from Tax Hikes (PATH) Act of 2015. President Barack Obama signed the bill into law.
The IRA Rollover was first enacted in 2006 as part of the Pension Protection Act. The provision allows individuals aged 70½ and older to donate up to $100,000 from their IRAs to public charities without having to count the distributions as taxable income. Individuals are required to begin taking distributions at age 70½. Normally, these distributions are subject to income taxes. This incentives enables individuals to make tax-efficient contributions to charities.
Individuals who are at least 701/2 at the time of the contribution.
How much can I transfer?
Up to $100,000 per year.
What are the federal tax implications to me?
You do not recognize the transfer as taxable income.
Does this transfer qualify as my minimum required distribution?
Yes, it counts towards your distributions for the year.
Can I have the gift directly distributed to TPF?
Yes. It is important that you not withdraw the funds prior to making your IRA Rollover gift. Instead, have your gift distributed directly from your IRA to TPF.
If you’d like to get more information, please call us 646.530.8988