Taxes and Donations



  • Dear Friends,

    On Dec 19, 2014, the President signed H.R. 5771 which is legislation that extends the special IRA rollover incentive for gifts completed in 2014.

    For those over age 70½, it is once again possible to make tax-favored charitable gifts from traditional and Roth IRA accounts. Amounts given in this way will count toward 2014 required IRA withdrawal amounts.

    To make such gifts, it is important to not withdraw funds prior to a gift, but distribute them directly from an IRA to one or more qualified charities. For those with check writing privileges on their accounts, this may be the most efficient way to make gifts directly from an IRA.

    As always, please consult with your tax expert or financial planner prior to making important financial decisions.


    With an IRA charitable rollover, taxpayers over 70.5 in age can make a pretax donation up to $100,000 to a public charity or church without without having to count that distribution in your income. You direct the custodian of your pretax Individual Retirement Account to make the transfer directly to a public charity. In return, you’ll forego the charitable income tax deduction.

    For more information:
    http://www.forbes.com/forbes/2006/1211/003.html
    https://www.congress.gov/bill/113th-congress/house-bill/5771
    http://www.forbes.com/sites/ashleaebeling/2014/12/17/charity-tax-breaks-extended-through-2014-only/