IRA Charitable Rollover News and How This Can Benefit You
On Friday, December 18, the president signed into law the Protection Americans from Tax Hikes Act of 2015. This new law included the IRA Charitable Rollover provision being made permanent. The legislation allows all individuals 70 ½ and older to direct a portion of their IRA, up to $100,000, to charity without recognizing the assets transferred to the qualifying charity as income.

Please note, the legislation does not allow for individuals to make a rollover early next year and count toward the 2015 tax year (as has happened in previous years). The rollover and gift to charity does need to be made by December 31, 2015.

The rules of the legislation include:

1. The donor must be age 70 ½ or older on the day of the gift.

2. The donor may transfer up to $100,000 directly from their IRA to one or more qualified charities. This opportunity only applies to IRAs and not to other types of retirement plans.

3. The donor pays no income tax on the gift. The transfer does not generate taxable income or a tax deduction, so an individual benefits even if they do not itemize tax deductions.

4. The gift can satisfy all or part of the required minimum distribution of the IRA for the year.

5. The gift may not be used to fund a gift annuity, charitable remainder trust, donor advised fund or private foundation.

6. The donor may not receive any goods or services in return for the rollover gift in order to qualify for tax-free treatment.

7. If a donor made a gift up to $100,000 directly from an IRA in 2015 prior to December 18th (and meets the criteria), the gift will qualify under the new law.


This legislation adds flexibility when making a gift and benefiting Joslyn this year. If you are interested in discussing or learning more about how to make a gift, please contact Hillary Nather-Detisch at (402) 661-3883.