IRA Rollover Enacted

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

On December 18th, legislation passed 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 such as The Community Foundation free from federal income tax each year. Amounts given in this way 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.

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


Below are some resources for more information:

IRA Charitable Rollover Q&A

IRA Rollover Request Letter


December 2015