Publications

Permanent Charitable IRA Rollover

12/21/2015 Articles

Congress recently made permanent the IRA charitable rollover. Individuals over age 70½ can make lifetime gifts, up to $100,000 per year, to qualified public charities from their individual retirement accounts (IRAs). To qualify for the exclusion so that the IRA distribution is not treated as taxable income, the distribution must be transferred directly to a qualifying public charity. Gifts to private foundations, donor advised funds and supporting organizations are not eligible.

This technique is available for all taxpayers over age 70½ regardless of whether they itemize their deductions. It is particularly useful for taxpayers who do not pay mortgage interest or who may not otherwise itemize deductions on their tax returns.