Update on IRA Transfers to Charities December 2014
Individuals who have been waiting to take required minimum distributions from IRAs may now wish to make direct tax-free transfers to charity.
On December 16, 2014 Congress passed H.R. 5771, the "Tax Increase Protection Act of 2014." This is expected to be signed by the President and enacted into law.
Included is the IRA Rollover provision allowing individuals age 70½ and older to make direct transfers from traditional and Roth IRAs to qualified charities in amounts up to $100,000 free from federal taxation and income taxes under the laws of states that follow federal guidelines for determination of Adjusted Gross Income (AGI). Note that the extension is for 2014 only and applies to gifts completed by December 31, 2014.
Those who made direct transfers to charity earlier this year are covered by the retroactive nature of the provision. Such distributions will count toward their required withdrawals for 2014.
Update provided by the Sharpe Group.