IRA Charitable Rollover now Permanent!
Congress has made permanent a tax break on charitable donations from individual donor's retirement accounts. This provision allows individuals 70 ½ and older to donate up to $100,000 in IRA assets to a qualified charitable organization.
This retroactive extension is important to donors, many of whom donate a portion of their IRA distribution each year. A gift to a charitable organization from an individual's IRA can count toward the annual Required Minimum Distribution (RMD) required by the IRS. Moreover, the IRA charitable rollover is tax-free and not included in a donor's adjusted gross income. By reducing taxable income, the provision can help donors avoid or reduce tax implications.
You can either satisfy up to $100,000 of the charitable portion of a Minyan gift using this tax-free IRA distribution or you can consider establishing an AIEF Endowment Fund, which will help secure AIPAC’s work for future generations.
If you would like to discuss how your retirement assets can help you with your philanthropic goals, please contact:
Melissa S. Katz, Esq.
Endowment & Planned Giving Professional