As we close out 2015, tax deductions and exemptions are at the forefront of many people’s minds. The IRA Charitable Rollover tax exemption was recently made permanent—and just in the nick of time to take advantage of it in 2015!
If you’re not familiar with this exemption, it allows each owner age 70½ and older to make charitable contributions—up to a maximum of $100,000 a year—from their IRA accounts. These distributions for charitable purposes are not taxed, are not included in your adjusted gross income and fulfill all or part of your required minimum distribution.
How to know if an IRA rollover gift is right for you:
- You wish to make a significant gift without using cash or other assets
- You do not need all or a portion of your IRA income
- You are paying too much in taxes and are looking to reduce your taxable income
- You do not itemize deductions. Because a rollover gift can reduce your income and taxes, you can still benefit from charitable giving even as a non-itemizer.
- You want to give over and above your normal giving. An IRA rollover gift does not count towards the 50% annual limitation on charitable gifts.
You have until December 31st to take advantage of this new provision for 2015, and it is retroactive to the beginning of the year—thus, if you already made a charitable contribution from your IRA, it will qualify under the new law. If you’d like to learn more about whether this giving strategy might be right for you, please contact our Vice President of Planned Giving, Richard Spalholz at [email protected] or 312-487-5628.
There are many ways to realize your charitable goals for serving those in poverty around the world, and it’s our purpose and pleasure to help identify the best approach for you.