IRA Distributions

Remember the IRA tax-free charitable transfer? This special gifting opportunity began in 2006, and after several extensions, Congress let it expire on December 31, 2013. Under the regulation, individuals age 70 ½ or older were permitted to direct gifts from their IRAs to qualified charitable organizations, such as Salesian Missions, up to $100,000 in any year the regulation was in force. Needless to say, many Americans were disappointed that they could no longer make gifts to their favorite charity in this manner.

BUT WAIT! There may be new life once again.

Recently the House passed the "America Gives More Act of 2014" (H.R. 4719). One of the key provisions of the Bill is to permanently extend tax-free charitable distributions from IRAs. It may even be retroactive to January 1, 2014. This is a positive development, but it still has to be approved by Congress.

IF YOU DO INTEND TO GIVE MONEY TO CHARITY THIS YEAR, YOU DON'T HAVE TO WAIT FOR CONGRESS TO ACT.

As long as you donate to a "public" charity and instruct your IRA's custodian to transfer the money directly from the IRA to the charity, you will qualify for tax-free treatment if lawmakers enact the provision retroactively.

If Congress doesn't pass the measure, those IRA owners who itemize will still receive a tax break, in the form of an itemized deduction.

Don't miss this wonderful opportunity to benefit poor children… and yourself! Contact your legal or tax advisor or your financial institution for more information.