What can your individual retirement account do to help you support the charities dear to your heart?
It took an act of Congress, but an IRA charitable gift option that expired and was extended several times over the years was made permanent in December 2015.
Many charitable-minded Everence members take advantage of this law to withdraw IRA funds to donate to their church or favorite charities. And the donations to qualifying charities are not taxable income for donors 70 ½ or older.
Someone 70 ½ or older can give away up to $100,000 each year to charity to avoid the disbursements being recorded as taxable income.
This kind of “rollover” gift is not reported as income on the donor’s federal tax return. Some states also do not treat the charitable rollover as taxable income. Check your own state tax code for the regulations where you live.
If you already want to donate dollars and you don’t need all of your IRA funds, this law gives you one more way to experience the joy of giving while living.