December 17, 2014

IRA Charitable Rollovers for 2014 ONLY

The possibility of permanently instating the IRA Charitable Rollover may have evaporated for this year, but Congress has reinstated it at least for 2014. That gives donors over age 70 ½ only until the end of this year to roll over IRA funds up to $100,000 to charities to avoid having the distribution count as taxable income.

Donors have been waiting to see not only if the IRA Charitable Rollover Rule would be extended into 2014, but if it would be made permanent along with several other tax provisions like an increase in gifts of property for conservation purposes and an enhanced deduction for food inventory contributions. But the long-term tax provisions failed to pass despite bipartisan support. However, the President will sign into law short-term tax provisions, one of which extends the IRA Charitable Rollover through 2014.

Donors may contribute up to $100,000 to a charity directly from their IRA by December 31, 2014, and that distribution will not be treated as taxable income in 2014. The IRA Rollover will expire after December 31, 2014. To find out more about this provision and whether you should consider taking advantage of it, talk with your tax or estate planning professionals.