Charitable IRA Rollover Becomes Permanent, Allows Lifetime Gifts
December 18, 2015//
Just before noon today, the Senate voted to pass the Protecting Americans from Tax Hikes (PATH) Act making the IRA Charitable Rollover permanent law.
The Charitable IRA allows American seniors to make the gift of a lifetime by giving their individual retirement accounts (IRAs) to charity, tax-free.
People age 70½ and older can transfer up to $100,000 per year from IRAs to charity-without incurring federal income taxes today or estate and income taxes in the future. If married, each spouse can transfer up to $100,000 from his or her IRA annually.
IRA donors may choose from several types of funds available at the Community Foundation. Chief among these are:
- Unrestricted Funds: Donors use this fund to meet ever-changing community needs-including future needs that often cannot be anticipated at the time a gift is made. Our local expertise helps us evaluate all aspects of community well-being. This fund is then used to make a difference where it is needed most.
- Field of Interest Funds allow donors to target gifts to causes important to them: arts, AIDS services, urban education, neighborhood revitalization, youth welfare and more.
- Designated Funds are earmarked for a specific nonprofit organization or purpose. These funds provide ongoing funding for a specific nonprofit organization-a senior center, museum or any qualifying nonprofit charitable organization.
Because of IRS regulations, gifts from your IRA to Donor Advised Funds do not apply.
If you or someone you know is interested in this type of gift or want to learn more, please contact Beth Stipe at email@example.com or call us at (509) 663-7716.
Now through December 31st, we’re matching all new funds by 10% up to $1,000 so now is a great time to open a new fund!
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