IRA Charitable Rollovers

On December 18, 2015, President Obama signed into law the Protecting Americans from Tax Hikes (PATH) Act of 2015, which includes a permanent extension of the IRA Charitable Rollover tax provision. The IRA Charitable Rollover provision, retroactive to January 1, 2015, allows individuals aged 70 1/2 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 and cause, donors benefit by not having to pay federal income taxes on the amount donated.

The requirements to make an IRA Charitable Rollover are:

  • Donors must be at age 70½ 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.

The benefits are:

  • 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 and the Council on Foundations does not provide legal tax advice; we strongly recommend that you consult with a tax advisor when considering making a charitable contribution.

For information about or assistance with making a gift to Main Street Community Foundation, please contact Susan Sadecki, President & CEO at 860.583.6363 or susan@mainstreetfoundation.org.