Charitable IRA

Mediaon December 22nd, 2015Comments Off on Charitable IRA

Tax law extension. Annually, retirement assets may become a preferred charitable gift for seniors. IRA distributions to charity can now again receive special tax advantages. Americans age 70½ and up can make tax-free IRA contributions to public charities such as The Freestore Foodbank.

Donors 70½ and older can make a gift of up to $100,000 from their IRAs! These gifts can qualify for tax-free charitable distributions AND meet minimum required distributions.

The Freestore Foodbank can help turn your individual retirement accounts into tax-saving charitable gifts.

Thanks to the new legislation, American 70½ and older can give up to $100,000 of their IRAs to charity without federal tax penalty. So your retirement funds can go further than ever before. To learn more, contact Mindy Hammer at (513) 375-8644 or mhammer@freestorefoodbank.org.

For years, estate planners have recommended that retirement assets may be the most tax-effective asset in larger estates to distribute to charity. These assets are not only vulnerable to heavy taxation as part of an estate but also can be taxed again as income in respect to a decedent on the tax returns of heirs.

Until recent legislation, there was a disincentive for retirees to give IRAs to charity during their lifetimes because withdrawals from IRAs were subject to income tax—even those given to charity.

Tax law extension. Annually, retirement assets may become a preferred charitable gift for seniors. IRA distributions to charity can now again receive special tax advantages. Americans age 70½ and up can make tax-free IRA contributions to public charities such as The Freestore Foodbank.

Frequently Asked Questions

The information provided here is based on analysis of recent legislation as of December 22, 2015. Every effort has been made to ensure accuracy of the answers to these questions. However, due to the complexity of the tax law and the fact that many of these provisions introduce issues that are new to the Internal Revenue Code, this information may be subject to change. It is not a substitute for expert legal, tax or other professional counsel and we strongly encourage donors to work with their professional advisors to determine the impact of this legislation on their particular situations. This information may not be relied upon for the purposes of avoiding any penalties that may be imposed under the Internal Revenue Code.