IRA Charitable Rollovers Are Back — and Permanent!

On December 18, 2015, President Obama signed the Protecting Americans from Tax Hikes Act of 2015 that had been passed by both the Senate and the House.

Protecting Americans from Tax Hikes Act of 2015IRA Charitable Rollover

Since 2006, IRA owners age 70½ and older have been able to make a qualified charitable distribution (QDC) up to $100,000 each year. The Protecting Americans from Tax Hikes Act of 2015 is a permanent extension of the IRA charitable rollover. As a result, individuals age 70½ or older can make gifts directly from their IRA to charity in 2015, 2016 and beyond. The gifts can be any or all of the required minimum distribution (RMD). Donors don’t pay income tax on the gifts, even if they don’t itemize their tax deductions. No goods or services can be received in return for the IRA rollover QCD in order for the gift to be tax-free. The legislation applies to traditional, rollover, and Roth IRAs (the latter must have been open for at least five years and meeting other conditions) and each of these can be the source of such transfers. Here are three scenarios to take advantage of the new law:

  1. The law is retroactive to January 1, 2015, so if you made QCD’s directly of up to $100,000 from your IRA custodian to charities in 2015, the gift will qualify under the new law.
  2. Donors who are 70 1/2 years of age or older can transfer up to $100,000 now directly from their IRA to one or more qualified charities. This opportunity applies only to IRAs and not to other types of retirement plans. The gift needed to have been made by Dec. 31, 2015, for the gift to qualify for the 2015 tax year.
  3. You can do an IRA charitable rollover (or an additional one) in 2016. Unlike previous laws, there’s no expiration date, so donors can take advantage of the benefits of the law every year.

If you would like more information please contact a representative below.

Bill Peterson, Vice President
LSS Development & Foundation
605-444-7503 • 1-800-568-2401 ext. 7503 • Bill.Peterson@LssSD.org

Linda Jensen, Church Relations & Planned Giving Development Officer
LSS Development & Foundation
605-444-7536 • 1-800-568-2401 ext. 7536 • Linda.Jensen@LssSD.org

Kurt Osborne, Lutheran Planned Giving
605-940-7524 • kosborne@sdsynod.org

Jim Schade, Lutheran Planned Giving
605-940-2363 • jschade@sdsynod.org

This is not a substitute for legal or tax advice, please contact your attorney, tax advisor or accountant for additional guidance.

 

Linda Jensen, Church Relations & Planned Giving Development Officer
LSS Development & Foundation

 

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