Take advantage of the IRA Charity Rollover

Posted on December 18, 2014

Special Alert: The IRA Charity Rollover is back!

Take advantage by making a charitable donation by December 31!

Special legislation [Tax Increase Prevention Act of 2014] just enacted by Congress (awaiting the President’s signature) restores the IRA- Charity Rollover but only through December 31.

If you have not taken your required minimum distributions yet or are about to make your charitable gifts for 2014, you have a small window to take advantage of this tax benefit.

  1. The distributions (not to exceed a total of $100,000.00) from your IRA to charities must be paid directly to those beneficiaries by December 31.
  2. You must be at least age 70½.
  3. You cannot obtain any economic benefits from these charitable gifts. They cannot be used for a charitable gift annuity, a charitable remainder trust or contributed to a donor advised fund or private foundation.
  4. If you have a 401(k) or other type of qualified plan, you must first make a tax-free rollover of funds to an IRA and then make your charitable distributions.

The withdrawal from your IRA for direct distributions to charities will not be subject to federal income taxes.

If you do not itemize deductions, this is a way to get tax benefits and to profoundly help Areyvut and facilitate some serious chesed, tzedakah and tikkun olam while avoiding federal income tax on IRA withdrawals.

For information and for assistance in making the IRA withdrawal and distributions, please contact Daniel Rothner at 201-244-6702 or daniel@areyvut.org.

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