Events & News

Charitable News Update: IRA Rollover

Dec. 21, 2015

On December 18, Congress passed legislation, which the President signed, which extends the special IRA rollover, also known as “Qualified Charitable Distributions” permanent. This gift treatment is available retroactively for any IRA gift since January 1, 2015.

For those aged 70 ½ or older, it is now possible to make tax-favored charitable gifts from both traditional and Roth IRA accounts. A total of up to $100,000 can be transferred directly from an IRA to one or more qualified charities such as CORNWALL MANOR free from federal income tax each year. There may also be state income tax savings. Amounts given in this way count toward required IRA minimum withdrawal amounts for the year of the gift.

To make such gifts, it is important to not withdraw funds prior to a gift, but instead have the gift amount distributed directly from an IRA to the qualified (501 (c) (3) charity. For those with check writing privileges on their accounts, this may be the most efficient way to make gifts directly from an IRA.

So what does this mean for YOU?

If you use the standard deduction for your taxes, this may be a gift option for you.

HOW? A simple letter (sample-ira-transfer-form) will instruct your I RA administrator to transfer the amount you desire to the charity you specify.

LIMITATION- You may NOT fund a charitable gift annuity, donor advised fund, a trust or a private foundation with IRA rollover gifts.

Your unique tax situation determines your benefits. Please consult your tax advisor before making this type of gift.

We are providing this information for you to consider for your gift and tax planning for 2015 and in future years.

Call Anne Peiffer, Vice President for Public Relations & Dvelopment in the Cornwall Manor Development Office (717-675-1511) to discuss.

Have a Merry Christmas!