Starting in 2006, the IRS has allowed those over age 70 1/2 to make direct gifts to charity from their IRA account up to $100,000 per year. This rollover was a great benefit because it skipped the intermediate step of the funds being distributed to the taxpayer first, which created a tax liability, then having the after tax amount donated to charity. However, the authorization to allow this tax break expired in 2014 and, as of yet, has not been revived by Congress. But there is good news, using traditional methods of withdrawal from an IRA or other retirement account the taxpayer can still make the charitable donation without facing an additional tax liability. While alternative means are not as easy as under the old law, an individual can still fund their charitable activities while retaining many of the benefits the IRA rollover once allowed.
See Robert S. Sharpe Jr., Rolling With the Rollover, Wealth Management, August 27,2015.
Special thanks to Jim Hillhouse for bringing this article to my attention.
