IRA Charitable Rollover Extended Through December 31, 2014

December 19, 2014 - President Obama signed into law a one-year extension (retroactive to 2014 only) of the IRA Charitable Rollover tax provision, which was recently passed by Congress. The IRA Charitable Rollover provision allows individuals aged 70½ and older to donate up to $100,000 from their Individual Retirement Accounts (IRAs) to a qualified public charity, such as Main Street Community Foundation. Besides supporting a favorite charity, donors benefit by not having to pay federal income taxes on the amount donated.

But you will only have until December 31st to take advantage of this provision.

The requirements to make an IRA Charitable Rollover are:

  • Donors must be at age 70 ½ or older;
  • The maximum amount which may be transferred from an IRA is $100,000;
  • Distributions must be made directly to the charitable organization through the IRA plan administrator;
  • Distributions must be made from traditional or Roth IRAs;
  • The distribution can be made to almost all types of funds held by the Community Foundation. The exception is that a distribution to a donor advised fund will not count as a qualified distribution.

Benefits include:

  • IRA distributions directly to charity are not treated as taxable distributions;
  • IRA distributions to qualified charities qualify for the required minimum distribution (RMD);
  • Assets are removed from your estate;
  • Your generosity helps the communities served by Main Street Community Foundation during critical times.

Disclaimer: The Main Street Community Foundation does not provide legal tax advice; we strongly recommend that you consult with a tax advisor when considering making a charitable contribution.

If you have any questions, need more information or would like assistance making a gift to Main Street Community Foundation, please do not hesitate to contact Susan Sadecki, President & CEO, at 860.583.6363.